European Central Bank Executive Board Member Fabio Panetta talked about possible ways to encourage the use of the digital euro as a means of payment rather than savings.
During a recent online seminar, he noted,that the launch of a digitized currency may encourage consumers to transfer their deposits from commercial institutions to the Central Bank, especially during periods of economic destabilization. This will harm the private banking sector and further deepen the crisis.
One of the possible methods to solve the problem iscalled the introduction of individual limits onstorage of digital euro. In this case, funds above the established threshold can be automatically redirected to a bank account, or over time a negative interest rate will be activated, gradually “burning” the interest rate. deposit.
These measures should discourage the use of the digital euro as a form of investment on a permanent basis.
The EDC continues to evaluate the prospects for the launch of a new form of money and study the economic systems that may be affected.
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