Digital payments and AI at core of Italy's central bank 2026-2028 strategy

The Banca d'Italia has published its Strategic Plan for 2026-2028, outlining four key objectives. The plan focuses on proactive institutional action, human capital development with AI, strengthening payment systems including digital currency, and overseeing new financial technologies.

Four pillars for a digital future

Banca d'Italia's 2026-2028 Strategic Plan outlines four core objectives.

It aims to enhance the Bank's proactive response to external changes and effectively communicate its institutional outcomes.

A significant focus is on developing human capital and leveraging artificial intelligence to streamline operational and decision-making processes for greater agility and efficiency.

The plan also seeks to strengthen the Bank's role in domestic and cross-border payment systems, with a particular emphasis on the realization of a central bank digital currency (CBDC).

This includes active participation in the Eurosystem's Alliance for the Digital Euro and exploring blockchain integration through projects like Appia and Pontes.

Furthermore, the strategy prioritizes overseeing the evolution of new technologies within the financial system, ensuring robust supervision and customer protection against emerging risks like cyber threats.

Governor Fabio Panetta highlighted the plan's role in reinforcing the Bank's authority and position nationally and internationally.

Navigating a complex global landscape

The strategic plan is set against a backdrop of intensifying geopolitical conflicts, global economic fragmentation, and financial market volatility.

These factors challenge international cooperation and central bank effectiveness, particularly concerning financial stability and payment systems.

The document highlights the pervasive impact of digital transformation and artificial intelligence on economic growth, labor markets, and institutional operations.

This necessitates a proactive approach to risk management, including cyber risks, and a focus on granular, harmonized data.

The Bank also commits to its energy and environmental transition plan.

Ambitious blueprint for a digital era

Banca d'Italia's strategic plan offers an ambitious roadmap for digital and geopolitical adaptation.

Its focus on AI and digital currency positions the institution at the forefront of central bank innovation, vital for future relevance.

Success, however, depends on overcoming significant challenges in data harmonization and managing new technological risks.