While cash is and will remain a core central bank product, people’s daily lives are becoming more and more digital.
“That’s why we believe it is important for us to offer people a reliable, public sector option,” said Burkhard Balz, member of the Executive Board of the Deutsche Bundesbank in a recent interview.
“Central banks are not aiming to get mired in additional risks to financial stability by implementing a digital currency. And that’s why we are going to design the digital euro in such a way that it does not result in uncontrolled outflows of deposits from banks and savings banks. Indeed, this is the very reason why we are discussing a holding limit,” he said in answer to a question on risks to financial stability.