The Italian Banking Association recently announced that it is starting the digital euro research project after a long period of consideration, also revealing who it will collaborate with, and what it plans to focus on.
Italian Banking Association, also known as ABI, recently announced plans to get involved with digital euro — an experimental CBDC project that is to become a sovereign European digital currency. The Association just started its pilot studies of the project, thus officially launching its research, and potentially development, as well.
Italian Banking Association to start studying the Digital Euro
The year 2020 is finally over, and while the digital currency industry ended the last year on a good note — it is encouraging to see that new milestones are already being achieved in the first week of January 2021.
While the majority of the crypto industry is currently focused on Bitcoin’s new all-time highs and the continuation of the DeFi boom, it is worth remembering that the CBDC sector continues to grow, as well. Countries like China are still working on creating their central bank digital currencies, and Italian Banking Association has just joined the race, itself.
As some may remember, the Italian Banking Association (ABI) recently revealed that it is considering getting involved with the digital euro project. Well, it appears that the considerations are over, and that the ABI has decided to give its researchers green light and allow them to start researching the coin.
ABI Reveals its Collaborators on the Project
A new announcement published by the Association reveals that it is working on the project alongside ABI Lab — its own R&D arm. But, the two are not alone — they are also working on the project alongside the country’s commercial banks.
Now, regarding the ABI’s new digital euro study — the Association revealed that it will focus on two major areas. The first will be the technical feasibility analysis, while the second one will be the CBDC programmability issue. Essentially, it aims to create a clear distinction from any other electronic payment method or system that is already existing and available.
The consortium will also be assisted by SIA, an Italian enterprise network company, which can help regarding the technical feasibility studies. SIA has plenty of experience with blockchain technology, as it is also involved with the ABI’s blockchain-based interbank settlement layer known as Project Spunta.
A CBDC Research that doesn’t include the Central Bank
One thing to note is that there are no indications that Italy’s central bank will be involved with the project. Instead, it has other collaborators and partners, such as PwC, a major consulting giant, as well as Reply.
While ABI is genuinely interested in researching the digital euro, the project is only a part of a larger effort to help local banks get used to crypto and familiar with it. ABI suspects that the future could include a coin such as the digital euro, and it needs the local banks to be ready for it.
In the end, many are pleased to see that the Association is taking action so early, as the ECB official commented on the matter back in December, stating that the consideration phase might last for months. Fortunately, that does not seem to be the case, which is a positive sign for the future of crypto in the EU, or at the very least, in Italy.
