Italian Banking Association (ABI) has revealed it will be willing to support the implementation of a digital currency from the European Central Bank.
According to the June 28 update on the ABI website. The association has approved guidelines governing its position on digital currencies and central bank digital currencies (CBDCs).
ABI — representing a group of banks in Italy — said it was ready to “participate in projects and experiments on digital currencies from the European Central Bank […] to accelerate the implementation of European-level initiatives.”
“Digital money must be fully trusted by citizens. To this end, it is imperative that the highest standards of compliance, safety and supervision compliance are adhered to,said the group. ABI cites “monetary stability” and respecting regulations related to the digital euro as its two main priorities.
Digital Euro Creation
The association stated that the establishment of a European CBDC could allow more cross-border P2P transactions, reduce the impact of interest and exchange rates, and overall only reduce the size of the bureaucratic process for payments.
According to ABI, developing a digital currency in the European Union (EU) can replace the demand for cryptocurrencies.
“Existence [CBDC Eropa] at the same time it can reduce the attractiveness of instruments that are comparable in use but issued by private individuals or (in the case of complete decentralization) that cannot be identified, characterized by an intrinsically higher risk profile.”
Cointelegraph reports that France became the first country to successfully pilot a digital euro, which operates on a blockchain, on May 20. The Dutch Central Bank said it was “ready to play a leading role” for CBDCs in the European Union.
Runs with distributed ledger technology
ABI has already implemented ledger ledger (DLT) technology for blockchain-enabled interbank systems. The project, called Spunta, is linked to Italy’s inclusion in a group of six other European countries – Malta, France, Cyprus, Portugal, Spain and Greece which agreed to promote the use of DLT in the EU.