Bank of Italy urges banks into digital assets

Bank of Italy pushes proactive digital asset investment

Bank of Italy Deputy Governor Chiara Scotti has called on banks to begin investing in digital assets and other digital technologies now, rather than waiting for a clear winning technology to emerge. In a speech delivered in Milan on October 23, 2026, she said banks must resist the temptation to delay decisions in an increasingly digital financial system.

Scotti argued that postponing investment may appear attractive because it can help lenders save money in the short term. However, she cautioned that such delays also carry costs when they slow learning or the creation of future opportunities. She framed early engagement with digital technologies as a way for banks to build capabilities and avoid being left behind as the system evolves.

Emphasis on experimentation and learning

A central theme of Scotti’s remarks was the importance of experimentation. She said that only by experimenting can banks understand how best to adapt new digital technologies to their business. Rather than seeking certainty before acting, institutions were encouraged to treat investment as part of an ongoing learning process.

Scotti recommended that banks focus on investments that can prove useful across different future scenarios, instead of tying their strategies to a single technological path. She said it makes sense to start on a limited scale and that flexibility and staged commitment can reconcile caution with innovation. This approach is intended to allow banks to participate in digital transformation while managing risk and uncertainty.

Uncertain future of tokenisation and role of banks

Scotti also addressed tokenisation, described as a technology that turns bank deposits into digital tokens that can be moved on blockchain-based networks. She said it remains unclear how widely tokenisation will spread. Despite this uncertainty, she maintained that banks must act if they are to preserve their role as issuers of private money.

By urging banks to explore tokenisation, Scotti linked technical innovation directly to the future position of banks in the monetary system. She indicated that engagement with such tools should form part of the broader experimental investment strategy. In her view, limited scale projects in tokenisation can both support institutional learning and help banks prepare for potential shifts in how deposits and payments are managed.

Guidance for banks navigating digital transition

Overall, Scotti’s guidance outlines a path for banks that balances prudence with action. Rather than waiting for certainty, banks are encouraged to invest in adaptable solutions, pursue pilot projects, and use staged commitments to refine their approaches. The message positions digital asset investment as a strategic necessity in a financial system that is turning increasingly digital.

The call for early but measured investment underscores a view that learning-by-doing will be critical to future competitiveness. By focusing on flexible projects, experimentation, and emerging tools such as tokenisation, banks are urged to build the capabilities needed to sustain their functions and opportunities in a changing environment.