The Italian Banking Association (ABI) has started experimentation with a digital euro based on distributed ledger technology.
- Comprised of over 700 Italian banking institutions, the ABI said Tuesday the work would examine the technical feasibility of a digital euro and further look at "new value-added services" that would become possible due to the programmable nature of the technology.
- "The aim of the initiative is to proactively contribute to public debate and support banks operating in Italy as they prepare for the future," said the ABI in a statement.
- The experiments will be divided into two parts: one looking at the infrastructure and distribution model to gauge technical feasibility, and another assessing how programmability could provide use cases that differentiate a central bank digital currency from existing electronic payments systems.
- In November, European Central Bank (ECB) President Christine Lagarde said she believes the region’s monetary authority will move to launch a digital version of the euro in the next two to four years.
- Along with other central banks, the ECB is actively working on how the digital euro might be designed and how it might function if launched.
Also see: Italian Banks Are Ready to Trial a Digital Euro