By 2024, the debate over the digital euro had decisively shifted from abstract concept to practical implementation, forcing Europe’s banking sector to engage more directly with the project. As the European Central Bank and EU lawmakers advanced legislative and technical preparations, commercial banks moved to shape how a future central bank digital currency would interact with the existing financial system.
Banks’ central concern was financial stability. The European Banking Federation, which represents more than 3,500 banks across the EU, warned that an unconstrained digital euro could accelerate deposit outflows from private institutions. In submissions to public consultations, the federation argued that large retail holdings of digital euros could weaken banks’ ability to fund lending to households and businesses.
“The digital euro must not undermine the role of banks in financing the economy,” said EBF chief executive Wim Mijs in a 2024 policy paper. He added that the project should reinforce Europe’s payments ecosystem rather than disrupt it.
In response, the ECB repeatedly underlined that strict holding limits would be built into the design. Policymakers have frequently referenced a cap of around €3,000 per individual, although no final figure has been set. ECB Executive Board member Fabio Panetta said such limits were intended to prevent “massive shifts of funds” from commercial banks to central bank money, particularly during periods of financial stress.
Banks seek clarity on their role
Beyond balance sheet risks, banks pushed for clarity on how the digital euro would be distributed. Industry groups broadly supported a two-tier model, under which private financial institutions would provide digital euro wallets and customer services while the ECB issues the money itself. The central bank has consistently backed this approach, arguing it preserves competition and leverages existing payment infrastructure.
At the same time, several major banks began preparing for a more hands-on role. Deutsche Bank, BNP Paribas and CaixaBank have all participated in research initiatives, proofs of concept, or internal testing linked to digital euro use cases. Fintech firms have also positioned themselves around potential applications such as programmable payments and improved cross-border settlement.
By late 2025, the tone of the debate had softened. While scepticism remained, much of the banking sector shifted from outright opposition to cautious cooperation. Banks increasingly framed themselves as indispensable intermediaries rather than obstacles to the project.
For policymakers, the challenge now is one of balance. The digital euro is meant to strengthen Europe’s monetary sovereignty and payments resilience, but its success depends on ensuring innovation does not come at the expense of financial stability or bank-based credit provision.
Related: ECB Outlines Core Design Features for the Digital Euro in New Technical Annex