European Central Bank Executive Board Member Fabio Panetta spoke about possible ways to stimulate the use of the digital euro as a means of payment, rather than savings.
During a recent online seminar, he noted that the launch of a digitized currency could encourage consumers to transfer their deposits from commercial institutions to the Central Bank, especially during periods of economic instability. This will harm the private banking sector and further deepen the crisis..
One of the possible methods of solving the problem, he called the introduction of individual limits on the storage of the digital euro. At the same time, funds in excess of the established threshold can be automatically redirected to a bank account, or over time, a negative interest rate will be activated, gradually «burning» deposit.
These measures should discourage the use of the digital euro as a form of investment on a permanent basis..
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text: Ivan Malichenko, photo: Getty Images