UniCredit CEO Andrea Orcel has expressed strong support for the digital euro, provided that traditional financial institutions maintain a pivotal role in its implementation and operation. Speaking at a Mediobanca conference reported by Reuters, Orcel emphasized the importance of banks retaining their central position in the flow of money if Europe is to successfully launch and integrate the digital currency.

Orcel underscored the digital euro's potential as a "very good" development for Europe, framing its introduction as a critical step towards enhancing the continent's economic sovereignty. The European Central Bank (ECB) has been exploring the digital euro as a means to fortify the euro area and bolster Europe's strategic autonomy in monetary matters.

Discussing the operational mechanics, Orcel raised essential questions about how banks would integrate digital euro services into their existing frameworks. He envisioned a scenario where banks seamlessly offer customers the choice between traditional cash and the digital euro, ensuring a smooth transition and enhancing convenience for users across Europe.

Piero Cipollone, an ECB Executive Board member, previously outlined that commercial banks would play a pivotal role in facilitating digital euro transactions. Under this framework, consumer banks would offer digital euro services at no cost to consumers, while merchants and service providers might incur associated fees, which would contribute to the evolving business models within the financial sector.

Evelien Witlox, digital euro director at the ECB, reiterated the cautious approach the central bank intends to take in developing the digital euro. Witlox highlighted the ECB's commitment to maintaining the legal tender status of the digital euro, ensuring its acceptance for everyday transactions, thereby potentially benefiting citizens and businesses alike.

The prospect of a digital euro represents a significant evolution in Europe's monetary landscape, responding to changing consumer behaviors and the rise of digital payments. As discussions and preparations continue, stakeholders, including banks, are poised to play a critical role in shaping the future implementation of the digital euro, aiming to safeguard Europe's financial sovereignty while meeting the evolving needs of a digital economy.