In recent times, the concept of digital currency has become more prevalent in European economic debate. In Italy, however, terms such as virtual currency, e-money, cryptocurrencies, and the digital euro are still often confused, creating uncertainty, especially among businesses and sellers dealing with settlements, regulatory compliance, and new customer expectations.

Today, the electronic payments market is undergoing a significant transformation. On the one hand, the use of e-money in the country is on the rise, driven by wallets, apps, and contactless payments. On the other hand, the European Central Bank (ECB) is working on the digital euro, a central bank digital currency (CBDC) that could complement cash in the coming years.

For Italian companies, this represents more than just a technological shift. The evolution of the European digital currency could impact payment infrastructure, cash management, compliance, and relationships with customers and suppliers. It will therefore become increasingly important to understand what the digital euro is, how it works, and what implications it might have for commerce.

Key takeaways

• The digital euro is not a cryptocurrency, but a digital currency issued and backed by the ECB. The aim is to provide a public monetary instrument for use throughout the euro area, reducing Europe’s reliance on non-EU payment systems whilst maintaining high legal and security standards.
  
• In Italy, e-money already includes regulated tools such as cards, wallets, and instant wire transfers. The digital euro would extend this ecosystem by introducing an interoperable CBDC for online, offline, and peer-to-peer payments.
  
• The differences between the digital euro and cryptocurrencies are massive. Central banks do not issue Bitcoin and other decentralised virtual currencies. Their value often fluctuates sharply. In contrast, the digital euro would have a stable value equivalent to that of the traditional euro and would be subject to European regulations.
  
• For companies and sellers, the growth of regulated digital payments means investing in flexible infrastructure, compliance, and efficient financial flow management. Solutions such as Stripe Payments and Stripe Treasury help businesses adapt to the evolving European market.
  

What is meant by “digital currency” in Italy?

In Italy, the term “digital currency” is often used as a synonym for cryptocurrency, but, from a regulatory and economic perspective, it has a much broader meaning. It refers to any form of money used electronically, including widely adopted tools such as bank accounts, digital wallets, payment cards, and mobile payment apps.

Most modern commercial transactions already take place using forms of e-money. When a customer pays online with a credit card or a smartphone, no actual cash is transferred; instead, the funds move across supervised financial institutions and authorised payment networks.

In EU policy discussions, the concept of digital currency is evolving further with the development of CBDCs. These are electronic versions of the official currency issued directly by a central bank.

It’s precisely in this context that the digital euro project comes into being.

The digital euro and CBDCs: An overview of the European project

The digital euro refers to a potential electronic form of the euro issued by the ECB and usable by citizens and businesses in the euro area.

The digital euro would not immediately replace cash, but would function as an additional form of public e-money. The ECB’s goal is to ensure that, as the economy becomes more digitised, citizens and companies retain access to money issued directly by the central bank.

Lately, the ECB has repeatedly stated that the project also stems from strategic European needs. In fact, a substantial share of the continent’s electronic payment activity relies on operators and infrastructure based outside of Europe. The introduction of a CBDC is intended to strengthen the autonomy of the European payment system.

The digital euro: How it works

Although the initiative remains at a preliminary stage, the information currently available already gives us an idea of how the digital euro would work. The ECB plans to create an electronic form of public money accessible through authorised intermediaries, such as banks and payment service providers. Individuals and businesses could use dedicated wallets to make online or offline purchases.

From an operational standpoint, the digital euro must:

• Have the same value as the traditional euro
  
• Be exchangeable one-to-one for cash
  
• Work throughout the euro area
  
• Support instant payments
  
• Meet high privacy and security standards
  

The system is not designed as a decentralised cryptocurrency. Management is expected to remain under the control of the ECB and authorised financial institutions.

When could the digital euro become operational?

The digital euro is not yet available, but the ECB is advancing its preparatory phase. According to information shared by the ECB, any launch is not expected before 2029 because the project requires European legislative approval, infrastructure development, and additional technical testing.

The digital euro is therefore unlikely to be introduced in the near term. Nonetheless, the project is already considered a strategic component of the evolution of European payments. It might influence how citizens, companies, and sellers use e-money and related services over time.

Does the digital euro already exist?

No, it’s not yet operational. The ECB is developing the project and assessing technical, regulatory, and security aspects. If approved, it could become a new form of public digital currency used alongside cash in the euro area.

The evolution of European payments

To understand why Europe is investing in a CBDC, we need to look at how payments have changed in recent years.

In Italy, the use of e-money has grown rapidly, driven by the rise of ecommerce, mobile wallets, and contactless payments. Numerous small commercial businesses have also accelerated the digitisation of their checkout systems.

At the same time, customer expectations have changed. Today, both individual customers and companies expect fast, simple settlement experiences that are available in real time.

The growth of digital payments has also highlighted some challenges:

• Heavy reliance on international infrastructure
  
• Fragmentation of European systems
  
• Increased cybersecurity requirements
  
• The need for common regulatory standards
  

The digital euro project forms part of a broader transformation of the European payments market.

The European Union has also introduced increasingly stringent regulations on open banking, Strong Customer Authentication (SCA), and digital payment services. The goal is to create a more integrated and competitive ecosystem while maintaining high levels of protection for customers and businesses.

For many Italian companies, this means adapting to an environment where the management of e-money is becoming more foundational to their day-to-day operations.

Differences between the digital euro and cryptocurrencies

One of the most important issues to clarify is the difference between the digital euro and cryptocurrencies. Terms such as “virtual currency,” “Bitcoin,” and “CBDC” are often used interchangeably, but they are actually very different tools.

Cryptocurrencies are decentralised online assets that use blockchain technology and are not issued by central banks. Their value often fluctuates significantly, and in most cases, they do not represent legal tender.

The digital euro, on the other hand, would be an official form of European currency backed by the ECB.

The main differences concern various aspects:

When discussing virtual currency, the distinction between supervised instruments and distributed assets is worth noting.

Is digital currency the same as cryptocurrency?

No. Cryptocurrencies are decentralised electronic assets that do not rely on a central bank and can be highly volatile. The digital euro, by contrast, is designed as a regulated CBDC issued by the ECB and backed by a stable value equivalent to that of the traditional euro.

The digital euro: Pros and cons

The discussion surrounding the digital euro involves banks, businesses, governments, and technology companies. There are numerous potential benefits, but several aspects remain unresolved.

Potential advantages

One of the main objectives of the initiative is to strengthen Europe’s sovereignty in electronic payment services. A public digital currency could, in fact, reduce dependence on operators outside the EU.

From an operational standpoint, the digital euro could also:

• Simplify cross-border payments
  
• Promote financial inclusion
  
• Support instant transactions
  
• Improve interoperability and standardisation
  

For sellers, greater integration of payment systems could lead to more efficient processes and an enhanced customer experience.

Potential disadvantages

However, there are still some issues that need to be resolved. The main concern is privacy. The ECB has stated on several occasions that the digital euro must ensure high standards of personal data protection, but the matter remains at the heart of public debate.

Other aspects of concern:

• The role of commercial banks
  
• The impact on bank deposits
  
• The limits on wallet usage
  
• Offline payment management
  

It’s worth noting that the digital euro project continues to evolve, and many practical details have not yet been finalised.

The future of digital currency in Europe

The debate over the digital euro shows that the future of European payments is not just about technology, but also about strategic autonomy, regulation, and competitiveness.

Over time, various forms of payment will likely continue to coexist: cash, e-money, digital wallets, and, potentially, CBDCs such as the digital euro. For Italian businesses, the main focus will be on adapting to a rapidly evolving ecosystem without compromising day-to-day efficiency or customer experience quality.

Understanding what the digital euro is, how it works, and how it differs from cryptocurrencies is already helping companies and sellers prepare for upcoming changes in the European payments market.

Future implications for companies and sellers

For Italian businesses, the evolution of digital currency extends beyond ways to pay. The repercussions could affect financial infrastructure, compliance, and operational management. Companies operating online are already undergoing profound changes in digital payments. The growth of e-money in the country has raised expectations regarding the speed, security, and ease of transactions.

With the emergence of new forms of regulated e-money, businesses will likely face additional technological and regulatory requirements.

More flexible payment infrastructure

Companies will need systems that can adapt rapidly to changes in EU rules.

The underlying infrastructure must support:

• Different payment methods
  
• Multicurrency management
  
• Regulatory compliance
  
• Automated reconciliation of financial flows
  

For a lot of sellers, the real challenge will be accepting emerging forms of electronic money without increasing administrative complexity or costs.

Compliance and security

The growth of e-money also brings with it new security and governance responsibilities.

European regulations such as the revised Payment Services Directive (PSD2), Anti-Money Laundering (AML) controls, and future regulations on CBDCs will continue to shape how companies manage digital payments. For this reason, many businesses are already investing in platforms that enable them to unify controls, authentication, and transaction monitoring.

Customer experience and instant payments

From a commercial perspective, digital payments are becoming a strategic component of the customer experience.

Customers and companies now expect fast checkout, instant transactions, and more straightforward online and offline processes.

The development of the European digital currency has the potential to accelerate this transformation.

How Stripe Payments and Stripe Treasury can support businesses

As digital payments become more focal to business operations, many Italian companies are seeking infrastructure solutions that enable them to manage growth, compliance, and innovation without increasing technical complexity.

Stripe offers tools designed to support the evolution of online commerce and regulated payments, such as Stripe Payments and Stripe Treasury.

Stripe Payments

Stripe Payments provides a unified, global payments solution that helps any business – from scaling startups to global enterprises – accept payments online, in person and around the world.

Stripe Payments can help you:

• Optimise your checkout experience: Create a frictionless customer experience and save thousands of engineering hours with prebuilt payment UIs, access to 125+ payment methods and Link, a wallet built by Stripe.
  
• Expand to new markets faster: Reach customers worldwide and reduce the complexity and cost of multicurrency management with cross-border payment options, available in 195 countries across 135+ currencies.
  
• Unify payments in person and online: Build a unified commerce experience across online and in-person channels to personalise interactions, reward loyalty and grow revenue.
  
• Improve payments performance: Increase revenue with a range of customisable, easy-to-configure payment tools, including no-code fraud protection and advanced capabilities to improve authorisation rates.
  
• Move faster with a flexible, reliable platform for growth: Build on a platform designed to scale with you, with 99.999% uptime and industry-leading reliability.
  

Learn more about how Stripe Payments can power your online and in-person payments or get started today.

Stripe Treasury

Stripe Treasury is a set of application programming interfaces (APIs) designed to integrate flexible financial services such as financial accounts, money transfers, and risk management directly into your platform or application.

Treasury can help you:

• Expand product offerings: Offer your customers access to innovative financial products such as business financial accounts, debit cards and programmable money movement – all seamlessly integrated into your user experience.
  
• Enhance the customer experience: Provide a unified, frictionless experience for your customers by consolidating financial services directly within your platform.
  
• Increase revenue opportunities: Generate new revenue streams by monetising the financial services you offer, such as account fees, card interchange, and more.
  
• Reduce operational complexity: Use Stripe’s infrastructure and compliance expertise to rapidly launch new financial products without the overhead of managing a banking charter.
  
• Maintain security and control: Retain visibility and control over your customers’ financial data and transactions through Stripe’s secure, developer-friendly APIs.
  
• Scale with confidence: Treasury’s infrastructure is designed to support high-volume, enterprise-grade financial services as your business grows.
  

Learn more about how Stripe Treasury can help you innovate and grow your business, or get started today.