Fabio Panetta, a board member of the European Central Bank (ECB), has said that in the event that the digital euro is launched, its issuance will be limited to €1.5 trillion.
According to him, the EU authorities fear that consumers may transfer all their money to a digital format, thus transferring it to the central bank, which would deprive commercial banks of the funds they need to lend to individuals and businesses.
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The limited issuance of the digital euro will help avoid negative consequences for the EU’s financial system and monetary policy.
Panetta has said:
“As the population of the euro area is currently around 340 million, this would allow for holdings of around 3,000 to 4,000 digital euro per capita.”
Panetta has added consultations conducted by the European Commission in 2021 among citizens did not show much “enthusiasm for a digital euro.”