Italian banks are preparing to trial a digital euro

According to BlockBeats, the ABI (Italian Banking Association), which consists of more than 700 Italian banking institutions, expressed its hope to help speed up the implementation of digital currencies supported by the European Central Bank (ECB) by participating in relevant projects and experiments.
Last year, the ABI formed a working group to study digital and crypto assets. In its statement on Thursday, the group shared 10 considerations for a digital euro, starting with the “must prioritize monetary stability and full compliance with the European regulatory framework.” The organization prioritized the need for a digital currency framework to fully comply with EU regulations in order to win public trust, and said banks will play a key role in maintaining that trust. In a second guideline, the ABI said that Italian banks are already using distributed ledger technology with reference to the Spunta project. The project is an initiative launched by the ABI Lab that aims to integrate blockchain to speed up the processing of interbank settlements.
According to the group, central bank digital currencies (CBDCs) will lead to future innovations in the traditional banking system, such as P2P transactions, machine-to-machine transactions, and the ability to manage exchange rate and interest rate risks due to their programmable capabilities.
“Programmable digital currencies represent an innovation in the financial sector that could revolutionize money and exchange. This is a transformation with huge potential added value, especially in terms of efficiency in operational and management processes.”
Italy is not the first country to be interested in experimenting with a digital euro. Earlier this year, the French central bank issued a call for proposals for CBDC experiments. The Dutch central bank also announced that the Netherlands is willing to trial a digital euro.
Last year, Jens Weidmann, president of the German central bank, warned in a speech that CBDCs could destabilize the financial system. Later this year, the German Banking Association issued a statement calling for a programmable digital euro.
Original link: https://www.coindesk.com