The Italian Banking Association (ABI) has revealed that it would be willing to support the implementation of a European Central Bank digital currency.
According to a June 28 update on the ABI website, the association had approved the guidelines governing its position on a digital currency and the central bank’s (CBDC) digital currencies.
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ABI, which represents a group of banks in Italy, declared that it was prepared to „participate in projects and experiments concerning a digital currency from the European Central Bank […] in order to speed up the implementation of an initiative at European level“.
„Digital money must be of full confidence to the citizens. For this, it is essential that the highest standards of compliance, security and supervision are met,“ the group said. The ABI cited „monetary stability“ and compliance with rules related to the digital euro as two of its top priorities.
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Creating a digital euro
The association stated that the creation of a European CDB could allow for a greater number of cross-border P2P transactions, reduce the impact of interest and exchange rates, and generally reduce the size of the bureaucratic payment process.
According to the ABI, the development of a digital currency in the European Union (EU) could replace the demand for crypto-currency.
„The existence [of a European CDB] could at the same time reduce the attractiveness of instruments of comparable use but issued by individuals or (in cases of complete decentralisation) that cannot be identified, characterised by an inherently higher risk profile.
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Cointelegraph reported that France became the first country to successfully test a digital euro, operating in a blockchain, on May 20th. The Dutch Central Bank said it was „ready to play a leading role“ for CBDCs in the EU.
Running on distributed registration technology
ABI is already applying Distributed Logging Technology (DLT) to its blockchain-powered interbank system. The project, called Spunta, is related to the inclusion of Italy in a group of six other European nations (Malta, France, Cyprus, Portugal, Spain and Greece) that agreed to promote the use of DLT in the EU.