Report: Digital euro could have negative impact on EU economic activity
According to Copenhagen Economics Institute, a digital euro could have a negative impact on the EU's economic activity, resulting in a permanent GDP decline of 0.12% to 0.34%. The holding limit for central bank digital currency (CBDC) is 3,000 euros, and if 100% is used, it could lead to a bank deposit outflow of up to 739 billion euros, resulting in an additional financing cost of 20.4 billion euros per year for banks, leading to higher loan costs. The Copenhagen Economics Institute was commissioned by the European Banking Federation, which introduced the impact of a digital euro on financial stability and consumer welfare.
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