The European Central Bank (ECB) announced that it can compensate banks if deposits are lost after the transition to the digital euro.
In Europe, it recently adopted MiCa, known as cryptocurrency regulations. However, the steps to be taken in crypto in the future are a matter of curiosity. However, a statement on the subject came from a member of the ECB board of directors.
Statement from ECB Board Member
European Central Bank (ECB) board member Fabio Panetta made statements about the digital euro. Panetta stated that the ECB could inject cash into the banking system if the transition to the digital euro causes deposit outflows. European banking committees have warned that a central bank-backed currency could push deposits and businesses away from commercial lenders. To dispel these fears, Panetta said the ECB could “compensate” the banks.
Ahead of its decision to develop a digital euro in Europe, the ECB said it would first of all be able to regulate the liquidity in the system to compensate banks if citizens left banks.
He said on Monday that the digital version of the euro will only be available to consumers and will be subject to a maximum holding limit that has not yet been set but is said to be around 3,000 euros.
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