After the digital euro, the EU should tokenize SEPA according to the Bank of Italy

Europe could soon fundamentally rethink its payment infrastructure. The Bank of Italy has just sent a strong signal in favor of a tokenized version of the SEPA system. An initiative that could redefine the place of the euro in an increasingly digital financial world.

Tokenized SEPA, an idea that is gaining momentum in Rome

It was from Rome, during a speech on Monday, that Chiara Scotti, vice-governor of the Bank of Italy, launched the idea. His message is clear: the European Union should seriously consider a tokenized version of its common payment system, SEPA (Single Euro Payments Area).

For Scotti, tokenization is no longer an experimental technology. It has become “relevant”. And rather than waiting for the emergence of new instruments, she calls for promoting what Europe already has.

“ A tokenized extension of SEPA could constitute an important area of ​​reflection, drawing on a distinctive European asset: a large-scale common payment framework, with shared standards and an established degree of interoperability “, she said.

The observation is relevant. SEPA deals with colossal volumes: in the first half of 2025, cashless transactions reached 116 trillion euros, up 2.9% year-on-year according to the ECB. Tokenize this infrastructureit is potentially giving the euro a new lease of life in the global digital economy.

Digital Euro, stablecoins, where is Europe really at?

The Bank of Italy does not stop there. Chiara Scotti also recalled that the digital euro remains the most advanced project analytically. Monetary policy, financial stability, protection of privacy, inclusion: all angles have been scrutinized by the ECB and the Eurosystem.

Proof of this dynamic, the ECB has just signed agreements with three standardization organizations, European Card Payment Cooperation, Nexo Standards and Berlin Group, to test the processing of online payments linked to the digital euro.

On stablecoins and tokenized deposits, the tone is more cautious. These instruments “may serve legitimate use cases,” Scotti acknowledges, but their implications for the monetary system remain “less clear.”

A message that resonates in a context where dollar stablecoins, such as USDT or USDC, are gaining ground globally. Europe cannot afford to ignore this dynamic, otherwise the euro will lose influence in digital financial flows.

In short, the Bank of Italy's proposal comes at the right time. While the digital dollar advances discreetly and stablecoins reshape global exchanges, Europe has a card to play with tokenized SEPA. The real question is no longer whether the euro should be digitalized, but how quickly Brussels will be ready to take the plunge.