Italian Banking Association launches experimental digital euro project

Published at: Jan. 6, 2021

The Italian Banking Association, or ABI, has affirmed its support for the implementation of a sovereign European digital currency by beginning pilot studies on a digital euro project.

According to an announcement, the association is working with its research and development arm, ABI Lab, and commercial banks in the country to develop an experimental digital euro.

The ABI’s digital euro study will reportedly focus on two major areas — technical feasibility analysis and central bank digital currency programmability to create a distinction from existing electronic payment methods.

Italian enterprise network firm SIA will assist the consortium in the technical feasibility studies. SIA is also a collaborator in Project Spunta, the ABI’s blockchain-based interbank settlement layer.

While the project is focusing on an experimental digital euro, there are no indications of any involvement by Italy’s central bank. Instead, other collaborators like digital services outfit Reply and consulting giant PwC are named as partners in the pilot study.

For ABI, the program is part of an effort to prepare Italian banks for a future that could include a digital euro. Commenting on the project's goals and objectives, a spokesperson for ABI told Cointelegraph:

"The aim of the initiative is to proactively contribute to public debate and support banks operating in Italy as they prepare for the future. It doesn’t aim to anticipate the [European Central Bank] decision on the adoption of a digital currency but rather to explore possible use cases and reflect on the implications of its possible implementation beforehand."

Back in December, an ECB official said the bank's consideration phase for a digital euro could go well into 2021. Indeed, previous reports stated that a regional central bank digital currency was at least five years away from being created.

In France, the central bank is already running several testing protocols for its experimental digital euro. Ethereum developer ConsenSys is among the blockchain firms collaborating with the partner firms testing the digital euro on behalf of the Bank of France.

Tags
Business
Cbdc
Banks
Italy
Related Posts
Italian Banking Association Ready to Accept Digital Euro
The Italian Banking Association (ABI) has revealed it would be willing to support the implementation of a digital currency from the European Central Bank. According to a June 18 update on the ABI website, the association had approved guidelines governing its position on digital currency and central bank digital currencies (CBDCs). The ABI—representing a group of banks in Italy—stated it was ready to “participate in projects and experiments regarding a digital currency from the European Central Bank [...] to speed up the implementation of a European-level initiative.” “Digital money needs to be fully trusted by citizens. To this end, it …
Business / June 23, 2020
ConsenSys to develop private version of Kakao’s Klaytn blockchain
Ethereum software company ConsenSys has formed a technical partnership with Kakao’s Klaytn blockchain, with a goal to develop a private platform for the issuance of a South Korean central bank digital currency, or CBDC. Klaytn is a public blockchain developed by Ground X, a blockchain affiliate of the South Korean internet company Kakao. Best known for its Kakao Talk mobile messaging app, Kakao has since branched out into the shopping and travel industries, among others. In 2019, the company commenced work on the Klaytn blockchain, which by the time of publication has the 25th-largest market capitalization in the cryptocurrency space. …
Technology / April 26, 2021
Bahamas Digital Dollar to Roll Out Across All Islands in H2 2020, Governor Says
While major industry actors argue that central bank digital currencies (CBDC) are years or decades ahead, the Bahamas plan to adopt a CBDC no later than 2020. John Rolle, the governor of the Central Bank of the Bahamas (CBOB), has reportedly confirmed that the Bahamian digital dollar initiative will be introduced across all islands in the second half of 2020. Bahamas has already launched a pilot in the Exuma region According to a Feb. 13 report by local publication The Tribune, Rolle has presented the plan addressing a Bahamas Chamber of Commerce and Employers Confederation on the initiative, which is …
Adoption / Feb. 14, 2020
Not All Central Banks Have an Interest in CBDCs
The recent survey results published by the Bank of International Settlements produced bullish and bearish sentiments with regard to Central Bank Digital Currency adoption. While banks in Emerging Market Economies (EME) are moving more rapidly toward issuing government-sponsored CBDCs, those in established countries appear to be taking a more cautious stance on the transition from fiat currencies to digital. The irony here is that the banks that could potentially catapult the world into the digital currency age are the ones that are the least likely to be the early adopters. What’s driving — or not driving — their reluctance to …
Adoption / Feb. 16, 2020
HSBC needs someone to helm its tokenization efforts
HSBC, the British multinational bank which manages the largest amount of assets in Europe, doubles down its interest in digital currencies. The bank is looking for a top executive to work with asset tokenization. On Jan. 30, HSBC opened the GPBW Product Director of Tokenisation position with a hiring process scheduled to end by Feb. 13. According to the job description, the "tokenization director would be responsible for “designing and implementing” a global tokenization proposition and representing the bank in front of regulators and digital assets ecosystem. The candidate should possess knowledge of digital assets, especially around asset tokenization and …
Business / Feb. 2, 2023