ECB plans to set limits for digital euro storage

The European Central Bank continues to conduct research on the prospects and consequences of implementationdigital euro.

One emerging issue is the impact of digitaleuros on customer behavior, which could lead to negative consequences for banks. In particular, we are talking about a change in behavior in relation to deposits, writes theblockcrypto.com.

ECB Board Member Fabio Panetta discussed thisquestion in the framework of an online seminar. In his opinion, the problem may appear due to the fact that the digital euro will encourage customers to transfer deposits from commercial banks to the central one, including during crises.

Panetta believes that the solution to this problem could bebecome the limit of digital euros that the client will be able to store for settlements. If such limit is exceeded during an incoming transaction, the remaining funds will be transferred to the bank account. This will prevent the influx of bank deposits and foreign investment into the ECB.

In addition, such measures can be supplementednegative interest rates on digital euro accounts, which encourage the use of CDBC as a means of payment, and not as an investment instrument. A negative rate can be charged on funds held in excess of the established limit, while the amount within the limit is not subject to a negative rate.

Recall that some time ago, Italian banks decided to test the digital euro.

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