BRUSSELS, 6 July 2021 – Since the publication of the report on a digital euro in October 2020, ESBG and its members have been following closely and with great interest the developments made by the European Central Bank (ECB) in the project of a digital euro.

In this context, ESBG has recently finalised a high-level paper that analyses some of the main challenges that a digital euro will face. The paper touches upon five main topics: First, it describes the bank funding model and the challenges and risks that the introduction of a digital euro could bring about. Second, it discusses the topic of limits to individual holdings and finds that any envisaged limit should be based on a sound assessment of available data. Third, it focuses on the impact that a digital euro would have on intermediation and competition. Fourth, it describes the point of view of the customers. Fifth, it examines cross-border payments.

Finally, in suggesting four possible use cases that could especially benefit from the issuance of a digital euro, ESBG and its members stand ready to further engage with the ECB on the possible issuance of a digital euro.

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