The Centre for Economic Policy Research (CEPR) published an article by two Bern University professors entitled “Why the digital euro might be dead on arrival”. They argue that contrary to the three stated purposes of the European central bank digital currency (CBDC), there is a fourth implicit and dominant objective: to maintain the banking status quo.
This goal derives from a desire to maintain financial stability and means the design includes restrictive digital currency holding limits.
The authors highlight the conflict of interest for banks that are required to act as intermediaries when they have “no interest in seeing the digital euro alive and well”. However, they don’t mention the bigger conflict for the European Central Bank (ECB) that becomes both supervisor and competitor.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
