European Central Bank Plans to Set Cap on Digital Euro Holdings

BlockBeats News, December 23rd: The European Central Bank has obtained the support of the European Council to propose a cap on the amount of digital euro holdings. Regulators are concerned that a central bank digital currency could siphon funds from traditional banks and are considering restricting the amount of digital euro that citizens can hold to ensure it is used solely for payments.

Opponents argue that these restrictions will protect traditional banks from competition and could potentially limit the use cases of the digital euro.