According to the recent report, Italian banks have expressed their desire to explore the European Central Bank Digital Currency. The Italian Banking Association (ABI), composed of 700 financial institutions, wants to accelerate the general implementation of the CBDC, which is backed by the European Central Bank ( ECB).
In regards, ABI has also handed out ten recommendations for a European digital currency during its Thursday announcement. The initial advice, which is the most important, suggests comprehensive complaisance with the appropriate European regulatory structure. On top of this, ABI also suggested financial sustainability as another crucial area.
Digital currencies are beneficial
The association also highlighted some advantages of a CBDC. It noted:
“A programmable digital currency represents an innovation in the financial field, capable of profoundly revolutionizing money and exchange. This is a transformation capable of bringing significant potential added value, particularly in terms of the efficiency of the operating and management processes”.
The development of a central bank cryptocurrency can aid in positioning Italy at a favorable spot to have proper administration of the country’s digital landscape. The features of the digital Euro can offer additional security to the financial system, on top of eliminating the inconveniences related to critical financial transactions like transferring of funds.
Furthermore, digital currencies can help a country achieve a completely cashless economy. This is particularly cost-effective since the cost of developing fiat currencies will be slashed or wholly abolished.
Italian banks dawn of innovation
The announcement highlighted the fact that digital currencies are programmable positions them as crucial innovations in the finance sector. ABI stated that Italian banks believe that the development of digital currencies will immensely revolutionize money and the financial system altogether.
Italy has joined several other countries that have expressed the desire to deploy a central bank digital currency. Early this year, the Bank of France asked the public to submit proposals for the possible experimentation of a CBDC. Furthermore, South Korea also established a panel early this month to research digital currencies.