European banks can't agree on the digital euro — and the rift is getting messy.

Italy's all in. They're backing the ECB's push for a central bank digital currency. But France and Germany? Not so fast. Both nations are pumping the brakes hard, worried that an ECB-controlled wallet could siphon deposits straight out of commercial banks.

The fear is real: if consumers move funds into a digital euro wallet, traditional banks could see their liquidity dry up. That's a nightmare scenario for the banking sector. So while Italy sees opportunity, the bigger players are seeing risk.