Italian Central Bank Deputy Governor Advocates for Tokenized SEPA Payment System
Tech Italian Central Bank Deputy Governor Advocates for Tokenized SEPA Payment System Italian central bank executive advocates for tokenized evolution of SEPA infrastructureProposed upgrade aims to modernize Europes cashless euro transaction frameworkDeputy Governor emphasizes maintaining central bank oversight alongside innovationDigital currency developments prompt reassessment of European payment structuresInitiative aligns with broader digital euro development efforts across the eurozone European financial authorities are confronting mounting calls to transform SEPA infrastructure as blockchain-based finance reshapes digital transaction landscapes. Chiara Scotti, serving as Deputy Governor at the Bank of Italy, urged regulatory bodies to evaluate incorporating tokenization into Europes established cashless payment architecture. Her proposal connects payment system advancement with preserving monetary authority oversight, institutional credibility, and economic stability. Italian Official Brings Tokenization to Forefront Speaking at a Rome conference on Monday, Scotti challenged conventional approaches to payment modernization. She argued that European authorities must look beyond creating entirely new payment mechanisms. Rather, policymakers should investigate adapting current infrastructure to accommodate tokenized transaction settlement. The Single Euro Payments Area provides Europe with unified architecture for non-cash euro transactions. This network enables cross-border transfers throughout EU member states plus additional participating nations. Consequently, implementing tokenization within SEPA could leverage existing reach, regulatory frameworks, and system compatibility. As a significant contributor to