January 29, 2023

The ECB plans to limit the issuance of digital euro 1.5 trillion

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The ECB plans to limit the issuance of digital euro 1.5 trillion

Member of the Executive Committee of the European Central Bank (ECB) Fabio Panetta spoke about the development of the digital euro project and proposed limiting its emission to 1.5 trillion.

Speaking before a committee of the European Parliamenton economic and monetary issues with a report on the results of the development of the digital euro project, Fabio Panetta (Fabio Panetta) said that if the state cryptocurrency is issued, its emission will be limited to 1.5 trillion.

Thus, the ECB will be able to limit in advancethe amount of digital money withdrawn from lending to individuals and businesses. Any undesirable consequences that may arise from the issuance of a digital euro for monetary policy and financial stability can be minimized in advance.

“Keeping the volume of the digital euro at the level ofone to one and a half trillion will avoid negative consequences for the financial system and monetary policy. Since the population of the Eurozone is about 340 million people, this will allow to store between 3,000 and 4,000 digital euros per capita,” said Panetta.

He also drew the committee's attention that the general backgroundthe adoption of the state cryptocurrency remains at a low level and many participants in the ECB survey “were, to put it mildly, not enthusiastic about the digital euro, because they did not understand what was at stake.”

In May, Fabio Panetta said that the ECB would be ready to issue a fully functioning government digital currency in four years.