The President of the Deutsche Bundesbank, Dr. Joachim Nagel, shared new details about plans for a digital euro during a July speech. While he covered the usual motivations and risks of a central bank digital currency (CBDC), he added some detail on how holdings of digital euros might be limited.
In the past, there has been a reference to imposing a hard cap on holdings of around €3,000. And in a June speech, European Central Bank (ECB) board member Fabio Panetta shared the current analysis of limiting the total digital euros to between one and 1.5 trillion, equivalent to €3,000 to €4,000 per person.
Nagel confirmed that for individuals, there would likely be a hard cap limit. If someone sends you money that puts you over the limit, rejecting the payment wouldn’t be very user-friendly. So instead, any excess will be swept into your commercial bank account.
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