This chapter analyse if and how new technologies, and the distributed ledger technology (DLT), could really represent an opportunity, and not a threat, for the banking industry. Through the illustration of the Spunta DLT project, we illustrate how the Italian Banking Association has concretely brought the permissioned blockchain in the Italian banking sector, through an infrastructure for banks operating in Italy that in the future may host other applications. The chapter then dwells on the possibility that the ECB could issue a CBDC, and ABI’s position is presented. In this context, considering the experience gained on DLT, an experimental path related to the digital Euro is illustrated. This project was launched by ABI in December 2020 with the aim of actively contributing to the public debate and supporting Italian banks in the process of preparation for the future scenario, in the case the ECB decides to issue a digital Euro. The chapter concludes with an update on the current scenario that foresees the Eurosystem working on a possible functional design based on and prototyping the digital Euro. In the description of the current scenario, we wish to emphasise that, to effectively compete with comparable instruments offered by private entities or other foreign central banks, it is desirable that the digital Euro enable exchanges beyond the mere transfer of money. Moreover, for the digital Euro to be successful, it must enable the provision of value-added services, thereby supporting competition without displacing private initiatives, primarily around digital payments and avoiding the risk of disintermediation.

Despite the benefits that banks could get from implementing distributed ledger technologies (DLTs), few banks have focused on making full use of it. According to operational experience, DLTs – which are blockchain based in this case – are frequently employed at the level of cryptocurrencies but are seldom used when it comes to banking applications. This chapter aims to provide an overview of the current state of the academic literature on implementing DLT in the banking sector. By providing a comprehensive overview of DLT adoption in the banking sector, this study can contribute to the development of a better understanding of DLT and its potential to transform the banking industry.

This contribution discusses some critical aspects of the upcoming Markets in Crypto-assets (MiCA) Regulation. There is already extensive and comprehensive literature on the MiCA proposal, and the scope of these brief notes is to consider some – necessarily not all – of the issues that MiCA (as it stands in the original proposal) raises, and that might be considered in the next steps of the legislative process. In particular, we discuss the relationship between MiCA and MiFID-Prospectus rules, the issues raised by DeFI, tokenisation of assets, and some general commercial and civil law aspects.

This chapter provides a fundamental overview of the DLT in banking, emphasising the sectors present issues and fundamental industry shifts. To achieve this, the chapter will examine the principal DLTs projects and implementations in banking, categorising them into two main categories based on the type of need met: (i) products and services designed to meet the needs of financial institutions customers and (ii) internal processes and operations designed to meet the needs of financial intermediaries. As a result, the chapter concentrates on the primary features of the prevalent use cases in the sector, emphasising strengths and weaknesses.

The popularity of digital assets and blockchain solutions is accelerating. This chapter explores the environmental, social, and governance (ESG) impact of digital assets due to increasing institutional and retail investors participation. Blockchain technology can help financial institutions drive favourable enterprise ESG outcomes.