The European Central Bank (ECB) has received backing from the Council of the European Union to impose limits on how much digital euro individuals can hold. This measure aims to prevent excessive transfers from traditional bank deposits to the central bank digital currency (CBDC). The restrictions intend to ensure that the digital euro remains a tool for payments rather than a competitor to banks' funding sources.
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EU Council Supports ECB's Proposal to Limit Digital Euro Holdings to Protect Traditional Banks
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