In their
blog, ECB representatives summarize several measures included in the digital euro, necessary to prevent mass transfers of funds from citizens' bank accounts to digital assets. These measures promote the use of the digital euro as a means of payment rather than as an investment. The authors of the article note that banks can attract customers by increasing interest rates on deposits.
The ECB article presents arguments that contradict claims about the possible emergence of an economy-wide banking crisis as a result of the introduction of a digital euro, as well as the risk of banks losing deposits as a source of refinancing in the long term.
Their arguments regarding the use of fiat funds may seem somewhat original. They note that: “Consistent forecasts of future digital euro volumes in banking system-funded studies ignore a key variable (i.e. central bank money in circulation).”
It is likely that the main threat to the banking system is not central banks.