Nagel Says Jury Still Out on Holding Limit for Digital Euro

Bundesbank President Joachim Nagel said it’s still unclear what consumers’ holding limits for the potential digital euro should be.

“What exactly is the optimal level of the holding limit? I think the jury is still out here,” he said Monday in a speech in Rome.

“A paper by ECB economists first suggested that a holding limit of 3,000 digital euro per person would be successful in containing the impact on bank liquidity risks even in extremely pessimistic scenarios. The recent Bundesbank research that I just mentioned indicates that the optimal amount could be in the range of 1,500 to 2,500 ...