In recent years, Italy has been actively exploring the possibility of introducing a digital currency, seeking to adapt to the rapidly changing financial world and technological innovations.
The country is expected to introduce its own digital currency by 2025-2026, which will be an important step in modernising its financial system.
Prerequisites For The Introduction of a Digital Currency
The global economy is undergoing a digital transformation, and many countries are considering the possibility of issuing their own Central Bank Digital Currencies (CBDC).
The goal is to increase the efficiency of payment systems, reduce costs and ensure greater transparency in financial transactions. Italy, as part of the European Union, is actively involved in discussions on the creation of a digital euro.
Action Plan And Timeframe
According to statements by representatives of the Italian government, the development and testing of the digital currency has been planned for the period 2023-2024. During this period, pilot projects are expected to be carried out to assess the technical and operational aspects of the implementation of the digital currency.
The full-scale launch is planned for 2025-2026, which will allow Italy to become one of the first European countries with its own digital currency.
Fiscal Policy
In preparation for the introduction of digital currency, Italy is reviewing its tax policy on digital assets. In December 2024, the country’s parliament approved the 2025 budget, which includes changes to the taxation of cryptocurrencies.
According to the new rules, the capital gains tax on transactions with digital assets will remain at 26% until the end of 2025, instead of the previously planned increase to 42%. This decision is aimed at creating a stable tax environment for investors and users of digital currencies.
In addition, the new budget law provides the opportunity to recalculate the value of digital assets as of January 1, 2025, with the payment of a replacement tax of 18%. This will allow cryptocurrency owners to legalize their assets and avoid potential tax risks in the future.
Benefits of Implementing a Digital Currency
- Improving payment efficiency: A digital currency will speed up domestic and international payments, reduce transaction costs and increase the availability of financial services to the population.
- Fighting the shadow economy: Using a digital currency will increase the transparency of financial transactions, making it more difficult to evade taxes and reducing the volume of illegal economic activity.
- Supporting monetary policy: A digital currency will provide the central bank with new tools for implementing monetary policy, allowing it to more effectively control the money supply and inflation.
- Stimulating innovation: The introduction of a digital currency will create favorable conditions for the development of fintech companies and start-ups, which will strengthen Italy’s position as a hub for financial innovation.
International Context
Italy is not the only country considering the introduction of a digital currency. Many countries, including China, Sweden, and the Bahamas, have already launched or are testing their own digital currencies.
The European Central Bank is also actively exploring the possibility of issuing a digital euro, which is evidence of a global trend towards the digitalisation of financial systems.
Italy’s digital currency will improve payment efficiency, support monetary policy, reduce tax evasion, whilst enhancing its role in global digital finance.
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