What is the EU Council's stance on the digital euro?

The EU Council backs the European Central Bank's plan to explore a digital euro, viewing it as an evolution of money and a tool for financial inclusion.

Why are holding limits proposed for the digital euro?

Holding limits are proposed to prevent the digital euro from being used as a store of value, ensuring it does not impact financial stability or compete with bank deposits.

What risks does the ECB see with stablecoins and digital currencies?

The ECB warns that significant growth in stablecoins could cause retail deposit outflows, diminishing bank funding and potentially leading to instability.

Home / Business and Economy / EU Council Backs ECB's Digital Euro Plan with Limits

EU Council Backs ECB's Digital Euro Plan with Limits

25 Dec, 2025

•

Summary

EU Council supports exploring a digital euro, seeing it as money's evolution.
Holding limits will prevent the digital euro from becoming a store of value.
Caps aim to protect financial stability and prevent bank deposit outflows.

EU Council Backs ECB's Digital Euro Plan with Limits

The Council of the European Union has signaled its support for the European Central Bank's initiative to explore a digital euro. This endorsement views the digital currency as a natural evolution of monetary systems and a potential driver for financial inclusion across the bloc.

To maintain financial stability, the Council has proposed implementing holding limits for digital euro accounts and wallets. These restrictions are crucial to prevent the digital euro from functioning as a primary store of value, which could otherwise divert funds from commercial bank deposits, particularly during times of economic stress.

This approach aims to ensure the digital euro primarily serves as a payment rail rather than a competitor to traditional banking services. Experts believe these limits are essential to protect the euro system's credit creation capacity and prevent unintended monetary tightening.