Digital euro to cost EU banks 4-6 billion euros over 4 years, ECB estimates

By Valentina Za

MILAN, Feb 19 (Reuters) - Introducing the integer euro could outgo European banks betwixt 4 cardinal and 6 cardinal euros ($4.7-$7.1 billion) dispersed implicit 4 ‌years, a elder European Central Bank policymaker said connected Thursday.

ECB Governing Council subordinate ‌Piero Cipollone besides said the caller digital‑only cardinal slope currency which the ECB is moving connected is estimated ​to outgo astir 1.3 cardinal euros to acceptable up.

Operational costs would past beryllium astir 300 cardinal euros, helium added, without specifying whether this fig refers to an yearly amount.

The ECB is awaiting European Union authorities to contented the integer euro, which it sees arsenic a ‌way to support nationalist wealth ⁠relevant successful a integer economy, unify Europe's fragmented payments scenery and curb the relation of non-EU providers to support the bloc's monetary sovereignty ⁠and economical security.

BANKS WILL BE ABLE TO RECOUP COSTS, CIPOLLONE SAYS

"Estimates we've travel up with based connected indications we received from banks constituent to implementation costs of betwixt 4 and 6 ​billion (euros) implicit ​four years: that is astir 3% of what ​they walk each twelvemonth connected IT‑system ‌maintenance," Cipollone said.

He was speaking to an Italian parliamentary committee connected banks connected the integer euro project, which helium oversees nether his payments remit astatine the ECB.

Banks volition beryllium capable to marque up the costs done the fees they person from merchants connected the integer euro services they volition provide.

It volition beryllium banks that springiness users the smartphone ‌application needed to wage with integer euros.

Banks, however, won't ​have to deduct from the merchants' fees the ​costs they usually carnivore to remunerate ​private payments networks due to the fact that the ECB won't complaint for its web service.

The ‌ECB is presently astatine enactment to ​select lenders that are ​interested successful taking portion successful the aviator signifier of the integer euro up of its authoritative motorboat successful 2029.

Merchants, successful turn, volition prevention wealth due to the fact that determination volition ​be a headdress connected the ‌fees charged connected integer euro payments and the headdress volition beryllium beneath ​what planetary firms specified arsenic Mastercard oregon Visa complaint astatine present.

($1 = 0.8488 euros)

(Reporting ​by Valentina Za; Editing by David Holmes)