ECB gains backing from Council of EU for caps on digital euro holdings

Concerned that a CBDC will drain funds from traditional banks, regulators are considering caps on how much digital euro citizens can hold to ensure it's purely for payments. What to know : The Council of the European Union supports the European Central Bank's plan for a digital euro, viewing it as an evolution of money and a tool for financial inclusion. Limits on digital euro holdings are proposed to prevent the central bank digital currency from competing with bank deposits and to avoid financial instability. Critics argue that these limits protect banks from competition and may restrict the digital euro's potential usefulness.