A senior Bank of Italy official has called on the European Union to explore a tokenized version of SEPA, the bloc’s standardized payments infrastructure, citing the growing relevance of tokenization in financial systems. Chiara Scotti, the Bank of Italy official, signaled institutional interest in extending blockchain-based payment rails to complement or enhance existing EU payment infrastructure. The statement marks a shift in how legacy financial institutions view tokenized payment systems.
Central Banks Signal Shift on Tokenized Infrastructure
SEPA (Single Euro Payments Area) is the EU’s standardized payments system, enabling cross-border transfers across member states. Tokenization converts financial instruments or payment rights into blockchain-based tokens, enabling faster settlement and programmable transactions. The Bank of Italy’s call reflects growing recognition among central banks that tokenized payment systems are becoming relevant to financial stability and efficiency. The institution did not outline specific technical requirements or a timeline for such an exploration, but the statement signals institutional appetite to study how blockchain payment rails could integrate with existing EU infrastructure rather than replace it.
EU Payments Infrastructure Under Digital Pressure
SEPA currently processes millions of transactions across the eurozone, but settlement remains bound by traditional banking infrastructure timelines. The Bank of Italy’s proposal suggests central banks are monitoring tokenization’s potential to reduce settlement friction and operational costs. No official response from EU regulators or the European Central Bank has been reported. The statement carries weight as a signal of institutional acceptance, even without immediate policy directives or technical specifications. Bank of Italy’s public acknowledgment of tokenization’s relevance may accelerate internal discussions across EU central banks on digital payment rail modernization.
Tokenization Becomes Core Central Bank Agenda
Central banks globally are exploring central bank digital currencies (CBDCs) and tokenized payment systems as blockchain adoption accelerates. The Bank of Italy’s focus on SEPA tokenization aligns with broader EU efforts to reduce dependence on non-European payment infrastructure and strengthen digital sovereignty. A tokenized SEPA would theoretically enable programmable payments, real-time settlement, and reduced intermediary costs. This institutional interest in tokenization contrasts with earlier central bank skepticism and reflects shifting views on blockchain’s role in financial infrastructure.
Next Steps Remain Undefined
The Bank of Italy has not specified what a tokenized SEPA exploration would entail, technical architecture, or a timeline for feasibility studies. No EU commission response or formal working group has been announced. The statement remains a policy signal rather than a directive. Market participants and fintech firms are monitoring whether this call gains traction among other eurozone central banks or triggers formal EU-level investigation into tokenized payment infrastructure.
