- Italian Banking Association or the ABI announced that they were looking forward to trial their first ever digital Euro.
- Associazione Bancaria Italiana is basically an association of the banks in Italy consisting 700 Italian banks.
- ABI declared how it wanted to speed up the process of finally launching the European Central Bank Digital Currency (CBDC) also known as the Digital Euro.
A few days ago, the Italian Banking Association or the ABI announced that they were looking forward to trial their first ever digital Euro.
Associazione Bancaria Italiana is basically an association of the banks in Italy consisting 700 Italian banks. The Association of Italian Saving Banks (ACRI) founded in 1912. The Association of Italian Credit Unions founded in 1915 and the ABI was finally founded in 1919.
On this Thursday, ABI declared how it wanted to speed up the process of finally launching the European CBDC also known as the Digital Euro. ABI has been working hard for this. Last year it deployed an expert group in order to know more about cryptocurrencies. They are studying digital assets and the Blockchain technology to arrive at some specific considerations. The Italian banks are starting to realise that a digital currency may portray the innovation and the growth of the conventional money exchange practices.
DLT Project Spunta, Headed By Abi
The ABI also revealed that lately they’ve been also working on a project called Spunta, entirely based on the Distributed Ledger Technology. The Spunta Banca DLT headed by ABI aimed at the interbank restoration process. As of May, 2020 almost 55 banks have been using this new Blockchain technology. Spunta implements the R3’s Corda Enterprise. This enables the transaction reconciliation to work on its own and solve the time management issue of the process.
What A Digital Currency Represents
In the announcement ABI also emphasized that a programmable digital currency will represent innovation in the evolving financial technologies. They also added that this transformation has the potential to improve the efficiency of the operating and management processes.
Need To Work In Compliance With The Eu Guidelines
The Italian banks also felt the significance of working in compliance with the European Union (EU) guidelines. In order to provide the users the best of data privacy and cyber security. The ABI also believes that with the rise of CBDC, cross- border transfers with low transaction fees is more likely to establish itself in the country.
However, Italy isn’t the first of the countries to launch a trial in the digital currency. In this year itself, the French central banks also announced that they were ready for the CBDC trials. Further Followed by the Dutch central bank who made a pretty similar announcement.