As a seasoned crypto investor with a keen interest in central bank digital currencies (CBDCs), I’ve been closely following the developments surrounding the European Central Bank (ECB) and its potential digital euro. The latest remarks from Bundesbank President Joachim Nagel, indicating that no decision has been made regarding holding limits for a digital euro, have caught my attention.
The head of the Bundesbank, Joachim Nagel, has announced that no definitive choice has been reached concerning setting boundaries for a potential digital euro.
As a financial analyst, I can tell you that the European Union has not yet established the guidelines for holding limits of a prospective digital euro. This was made clear by Joachim Nagel, president of the Bundesbank, in his speech in Rome. In his address, Nagel emphasized that no agreement has been reached on this issue and reiterated that “the jury is still out” according to a Bloomberg report.
The president of the Bundesbank added that at first, ECB economists proposed a €3,000 limit for a digital euro per individual as an effective measure to mitigate potential bank liquidity risks, even in the most unfavorable forecasts.
Analysts at Bundesbank estimate that the ideal amount of digital euro per person may fall between €1,500 and €2,500, according to Nagel, without providing further explanation for this recommendation. The European Central Bank (ECB) has progressed to the next phase of its digital euro project with possible issuance anticipated in the future, yet a final decision on launching it remains undecided.
At Money20/20, I, as the digital euro director at the European Central Bank, emphasized our deliberate approach towards introducing a digital euro. Despite the decreasing use of cash and the rising influence of alternative currencies and digital payment methods, we remain committed to moving forward carefully.
If approved, the digital euro would hold the status of legal tender, enabling the populace to utilize central bank currency for routine purchases. This scenario would present an advantage for citizens, as merchants accepting digital forms of payment would be obligated to accept the digital euro. (Witlox stated this.)
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2024-06-24 15:34