The ABI, or Italian Banking Association, has recently stated that it is fully prepared to support the digital euro’s introduction, as long as it doesn’t displace them from the banking system.
As early as 2020, the Association of Italian Commercial Banks, which has over 700 members, has been backing the digital euro’s development.
According to ABI’s white paper, using distributed ledger technology (DLT) will facilitate a more transparent and efficient distribution of responsibilities between financial institutions and the Central Bank, unlike the traditional banking system.
Despite this, the participants of the ABI have reservations that the digital euro will eventually allow private users and companies direct access to the Central Bank’s digital currency, rendering commercial banks’ services unnecessary in the long run.
The ABI has called on the European Central Bank (ECB) to preserve the role of banks as intermediaries in CBDCs use. The digital euro should not pose a threat to existing financial instruments and additional banking services, according to the ABI.
The ABI has previously suggested that the digital euro be programmable, but the ECB did not support the idea since it would limit the scope of the programmable digital euro, making it non-fungible.
The association also emphasized the significant role of commercial banks in promoting the digital euro among the European population. Considering that banks will bear high costs related to anti-money laundering (AML) procedures and potential dispute resolution, they should be compensated.
The Association of German Banks also recently requested that the ECB allows commercial financial institutions to participate in the digital euro’s development and launch since they are better aware of customers’ needs.