{"id":174433,"date":"2021-02-09T23:54:11","date_gmt":"2021-02-09T20:54:11","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/ecb-leader-floats-3k-threshold-for-digital-euro-holdings\/"},"modified":"2021-02-09T23:54:11","modified_gmt":"2021-02-09T20:54:11","slug":"ecb-leader-floats-3k-threshold-for-digital-euro-holdings","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/ecb-leader-floats-3k-threshold-for-digital-euro-holdings\/","title":{"rendered":"# ECB leader floats 3K threshold for digital euro holdings"},"content":{"rendered":"

“# ECB leader floats 3K threshold for digital euro holdings <\/strong>”
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In an interview today, Fabio Panetta, executive member of the European Central Bank\u00a0said<\/a> the ECB may only allow digital euro holdings \u201cup to a certain threshold\u201d but added that the rollout of the central bank digital currency was unlikely to cause banks to lose deposits. Specifically, Panetta said that this threshold \u201ccould be around \u20ac3,000\u201d \u2014 worth roughly $3,600 \u2014 which he said would still meet most people\u2019s cash needs. <\/p>\n

He added that these figures were \u201dstill under discussion\u201d and that the ECB had also not yet decided on a cap for digital euro payments. Panetta emphasized that the ECB would not be competing with commercial banks, but rather just offer financial services with \u201cone more digital option.\u201d<\/p>\n

\u201cThe digital euro won\u2019t destabilise the financial system and the banks,\u201d said Panetta. \u201cIf people decide to turn some of their cash into digital euros, the banks won\u2019t lose any deposits. And as I said, we will discourage large holdings of digital euro. If banks do in fact lose deposits, then we can make more liquidity available to them.\u201d<\/p>\n

Panetta added the results of the consultation the ECB launched in October on a digital euro showed that the first concern for many was privacy:<\/p>\n

\u201cWe received 8,000 responses during the consultation phase. What people are most concerned about is data protection. They consider it important that no improper use is made of their personal data, which is something that can be guaranteed by the central bank.\u201d<\/p><\/blockquote>\n

The ECB has already pushed back the timeline\u00a0proposed by President Christine Lagarde of when it should reach a decision on releasing a digital euro. According to its website, the central bank will decide<\/a> \u201ctowards the middle of 2021.\u201d\u00a0From that point, according to Panetta, the ECB could launch a digital euro in \u201cfour or five years\u201d following consultations with lawmakers and deciding on technical solutions.<\/p>\n

A member of the executive board of the European Central Bank said the institution would attempt to discourage people from holding large sums in digital euros after the currency is released in the next five years.<\/p>\n

Authorities in China have already begun trials of a digital yuan in select cities across the country, resulting in thousands of residents receiving free money as part of a lottery. Panetta said that trialing a CBDC in different European cities would also \u201cprobably be a wise move\u201d as part of the rollout.\u00a0<\/p>\n