CLNR

ECB published its working paper series. These are the following:

  • Digital euro: Debunking banks’ fears about losing deposits.
  • Overall, the working paper addresses banks’ concerns about the potential negative impact of a digital euro on their funding. The authors argue that these concerns are largely unfounded, as the design choices of the digital euro have effectively addressed them. They believe that banks are misguided when they rely on studies that overlook these design features and ignore other challenges they need to address to ensure stable funding through deposits. The authors emphasize that the decision to issue a digital euro will be taken at a later stage after the legal framework is in place and all functional features have been specified.