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ECB says digital euro would not disrupt financial stability

Lenders remain healthy under modelled crisis scenario, regardless of CBDC’s holding limits

Euro note being disintegrated by binary code

The European Central Bank has said adopting the digital euro would not disrupt financial stability in the eurozone.

The ECB published a paper today (October 10) analysing what introducing the central bank digital currency (CBDC) could mean for eurozone lenders. Central Banking understands the paper was drafted in response to a request from the European Commission, whose policy-makers will be setting the digital euro’s holding limits during the process that will enable the ECB to issue the CBDC.

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