Now that the European Central Bank (ECB) is developing the prototype of its Central bank digital currency (CBDC), also known as Digital Euro, more details are now emerging based on its potential operational dynamics.

Speaking recently at the “Towards a Legislative Framework Enabling a Digital Euro” conference organized by the European Commission (EC), Fabio Panetta, a member of the ECB board, said that the bank may impose some restrictive limits on transactions for users. retail individual.

While Panetta acknowledged that the ECB has not made a final decision on what the limit will be, he said that €3,000 is a good example of a limit that the bank can impose on the digital euro as a store of value. He went on to say that the total number of transactions individuals can make may also be capped at 1,000 per month.

“If we give access to a means of payment, which is relatively limited, there are no transaction costs because you only need to have a smartphone,” said Panetta. “There will be risks that people can use this possibility to move, for example. , your deposits from other banks or your money from financial intermediaries”.

The ECB board member also highlighted an important issue related to the digital euro and how it will co-exist with fiat. According to him, both versions of the euro will complement each other to create a solid financial ecosystem within the bloc.

“The digital euro would be an additional option for retail payment, not a challenge to the function of the financial system,” he said, confirming that the new money is not designed to replace cash, a position that echoes similar words from the president. of the ECB, Christine Lagarde.

Other Central Banks they have maintained this position, noting that their CBDC will not displace cash or make them obsolete. This argument is very dubious considering people’s wide acceptance of the digital economy and financial developments that have largely relegated cash in some countries.

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