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The Italian banking sector has expressed its support for the ECB's digital euro initiative, backing its strategic importance for "digital sovereignty," according to Reuters.

However, the Italian Banking Association (ABI) has emphasized the significant initial investment required.

ABI Director General Marco Elio Rottigni has stated that while banks are in favor, they advocate spreading the high capital costs over time to ease the financial burden.

This cautious support comes as the EU finalizes the currency's regulatory framework, which includes limits on individual holdings to prevent bank runs and a planned launch in 2029.

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