Previously the European Central Bank had floated the idea of holding limits for a potential central bank digital currency (CBDC) of around €3,000, although the specific amount was never confirmed. A newly published survey conducted by the central bank last year gives it ammunition to consider limits of between €1,000 and €10,000 for the digital euro.
The timing is important because the digital euro is currently in the two year preparation phase which ends in October, when a decision on whether to launch will be made. However, enabling legislation has not yet been passed.
If consumers transfer some of their bank deposits into the CBDC, it could impact the capacity of banks to provide loans to consumers at affordable rates. Hence, holding limits are one of the most contentious issues in the digital euro design.
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