Leading Italian banks have expressed support for the European Central Bank’s (ECB) proposal to introduce a digital euro, aiming to modernize Europe’s financial system. However, they advocate for a gradual implementation strategy to manage initial costs. According to Marco Elio Rottigni, General Manager of the Italian Banking Association, their endorsement stems from the project’s potential for enhancing digital sovereignty and financial independence within Europe while maintaining robust regulatory oversight. To achieve this balance, banks prefer a dual approach that incorporates both the digital euro and commercial bank-issued digital currencies. This strategy is crucial to compete with countries like the United States which have recently introduced new regulations for digital assets. Meanwhile, the EU has reached an agreement with finance ministers, ECB President Christine Lagarde, and European Commissioner Valdis Dombrovskis. The deal incorporates provisions for the digital euro’s issuance and limits on citizen holdings to mitigate potential bank runs, ensuring a smooth rollout process. The project is expected to enter pilot phase in 2027, followed by a full launch in 2029 after legislative approval. Despite progress, debate about the digital euro’s scope and implementation strategy continues within European financial institutions. Meanwhile, some banking groups, such as Germany’s Banking Industry Committee and MEP Fernando Navarrete, have voiced their concerns over a scaled-down version of the digital euro that would focus on retail payments while excluding real-time transactions between financial intermediaries. They argue that existing settlement systems are already suitable for wholesale transactions. However, Italian banks believe a coordinated rollout could bolster Europe’s digital competitiveness and ensure they stay ahead in the evolving global financial landscape.