The Italian Banking Association (ABI) has thrown its weight behind the European Central Bank’s digital euro project, expressing strong support for the initiative. However, they raise concerns about financial burdens and advocate for a phased implementation of costs to mitigate the impact on banks. The ABI’s stance highlights their push for digital sovereignty while emphasizing the need to manage financial constraints. Marco Elio Rottigni, General Manager at ABI, stresses the importance of spreading costs over time due to significant capital expenditure involved in this initiative. The potential effects include shifts in liquidity preferences and deposit flows, as commercial deposits might move towards ECB-owned wallets. This change could significantly impact banks’ overall liquidity landscape. Institutional budgets will likely face substantial capital expenditures related to digital euro implementation. Collaboration among Italian banks is crucial for effectively managing costs during the rollout. The digital euro aligns with broader goals of achieving digital sovereignty in Europe. Historical resistance to retail-focused central bank digital currencies (CBDCs) has stemmed from concerns about deposit shifts towards central banks. The introduction of a digital euro could significantly reshape banking practices and their reliance on existing financial infrastructure, potentially influencing stablecoin demand and interbank digital transactions.