Invited to participate in the European Parliament’s Committee on Economic and Monetary Affairs (ECON) Public Hearing, the EACB presented its views on the Commission's digital euro proposal.
While appreciating the reflections on the digital euro amid societal digitalisation, we highlighted lingering fundamental questions. These include questions around deposit outflows, the digital euro's added value for end-users, ECB mandate, and whether it achieves strategic autonomy.
Against these considerations, the EACB emphasised the importance of addressing deposit outflow risks for cooperative banks, proposing a low maximum holding limit of EUR 500 to align with the digital euro's purpose without jeopardising banking diversity.
The hearing also underscored the need for thorough research before taking important decisions in the context of the legislative framework.
Detailed messages to policymakers can be found in the EACB's presentation slides.