Bank of Italy Flags Tokenized SEPA for EU Payments
Bitcoin Ethereum NewsEU may explore tokenized SEPA to align payments with digital finance trends and infrastructure shifts.Bank of Italy highlights trust and regulation as core to money despite tech-driven payment changes.ECB digital euro and tokenized SEPA seen as tools to maintain control amid private money growth. The Bank of Italy has pointed out that the European Union may need to assess the development of a tokenized version of its existing payments framework, signaling a possible shift in how digital transactions are structured across the region. The proposal centers on adapting the Single Euro Payments Area (SEPA) to align with ongoing technological changes, particularly as digital forms of money and distributed ledger systems become more prominent in financial infrastructure. Speaking on the issue, Deputy Governor Chiara Scotti highlighted that innovation in financial systems is prompting renewed scrutiny of central banks roles in maintaining monetary stability. She noted that while emerging technologies enable faster and more programmable transactions, these features relate to how payments function rather than what gives money its value. Scotti stated that trust remains the defining characteristic of money, supported by regulated institutions and regulatory frameworks. Her remarks raise concerns that technological advancements alone do not redefine monetary fundamentals, even as digital payment