Pexels.com/Karolina Grabowska
Main page News, Banking, euro, CBDC

Morgan Stanley has found that financial institutions might lose up to 8% of customer deposits due to a digital euro, Reuters reports. However, the bank's analysts note that the estimation is based on "bear case" scenario, according to which, all euro area citizens above the age of 15 transferred ~$3,637 into an ECB-regulated digital wallet.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

"This could theoretically reduce euro area total deposits, defined as households' and non financial corporations' deposits, by 873 billion euros, or 8%," the analysts wrote in a report.

At the same time, Morgan Stanley admits that banks in smaller countries, like Latvia or Greece, could be impacted harder than the average. Earlier in April, the European Central Bank (ECB) published a report of its public consultation on a digital euro.

ECB Official Sees 'Number of Scenarios' for Digital Euro

The financial regulator found out that the majority of respondents wants from such a digital currency privacy (43%), security (18%), the ability to pay across the euro area (11%), no additional costs (9%) and offline usability (8%).

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Strawberry Cake Media Corp. © 2024 Cookie Policy Editorial team Archive

ihodl.com is an illustrated edition about cryptocurrencies and financial markets.
Every day we publish the best materials for everyone interested in economy.