EU Digital Euro Gains Support – With Demands for Cost Relief and Dual-Track Approach

But while the Italian Banking Association (ABI) says the concept is essential for Europe’s “digital sovereignty,” it’s also pushing for practical adjustments - namely, spreading the early development costs over time rather than hitting banks with large upfront expenses.

ABI general manager Marco Elio Rottigni noted that Italian banks agree with the ECB’s direction, but emphasized that cost timing matters and Europe must stay competitive as other jurisdictions – including the U.S., which recently advanced stablecoin legislation – move quickly.

Rottigni also floated the idea of a two-track system, where a digital euro launches alongside commercial-bank-issued digital currencies to accelerate real-world adoption.

Brussels only recently reached political consensus on the next steps for the project, with EU finance ministers securing a say over whether the CBDC ultimately launches – and if so, how much each citizen is allowed to hold. That safeguard aims to calm concerns about deposit flight from the private sector. If lawmakers approve the required legislation next year, pilot testing could begin in 2027, with a potential public rollout in 2029.

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Still, the initiative isn’t without friction. German banking groups and conservative EU lawmakers remain wary. Critics argue that a scaled-back model – suitable for offline consumer payments but not large-scale wholesale transactions – would reduce risks and avoid competing with existing financial rails. Conservative MEP Fernando Navarrete has been particularly vocal, warning against overextending the project when current clearing systems already serve institutional needs.

Despite differing views on scope and speed, the debate signals a shared recognition: Europe sees digital money as inevitable – and the race to modernize is already underway.