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The euro digital wallet sets a limit of €3,000
- The European Central Bank (ECB) is determining the maximum balance for euro digital wallets and consultations involving retailers, consumers and banks are underway to finalize this limit.
- The ECB aims to balance monetary policy and economic factors, with discussions considering a range between 500 euros and 3,000 euros.
The European Central Bank (ECB) is deliberating on the maximum balance citizens can hold in their Digital Euro wallets, a decision that will be finalized with the introduction of the digital currency. In an interim report published on Monday, the ECB made known its intention to consult retailers, consumers and banks before determining the holding limit.
The first discussions have already begun, with further consultations expected in the coming months. The ECB aims to balance monetary policy objectives and economic factors when setting the limit. Burkhard Balz, a member of the Bundesbank board, said at the beginning of June that negotiations for the maximum balance range between 500 and 3,000 euros.
According to Crypto News Flash relationshipthere was talk of an expiry date for the digital euro.
The digital Euro aims to complement cash as a form of currency. It is designed in part to mitigate the growing dominance of U.S. tech giants in digital payments like PayPal and Apple Pay and the growing popularity of cryptocurrencies like Bitcoin.
However, the bigger question is whether imposing such usage restrictions will allow Digital Euro to compete with decentralized cryptocurrencies like Bitcoin. Unlike fiat currency, Bitcoin offers real financial power to its users without any government intervention. Despite being inflationary for now, Bitcoin has a limited supply of 21 million, making it a very strong store of value.
The ECB is currently examining the digital euro
The European Central Bank (ECB) has started the preparatory phase for the digital euro following its approval in October. During this phase, regulations will be finalized and suppliers will be selected to develop the necessary platform and infrastructure. The preparatory phase, which began at the beginning of November, will initially last two years. Like CNF reported earlier this year, the ECB also worked on offline payments for the digital euro.
At the same time, ECB director Piero Cipollone underlined the urgency of quickly concluding European legislation in a letter published on Monday to Irene Tinagli, chair of the European Parliament’s Committee on Economic and Monetary Affairs (Econ). Cipollone underlined the importance of promptly enabling a digital public payment method across the euro area to improve collective resilience and autonomy.
The European Commission proposed legislation for the digital euro in June 2023, predicting that it could be operational by 2028.
Earlier this month, in June, Europe held its biggest Bitcoin conference, with Bitcoin-backed non-custodial lending platform Debifi announcing its key plans, according to CNF relationship.
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