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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.