In December 2025, the EU Council officially supported the European Central Bank's position on introducing holding limits for the digital euro. This step became an important signal: a central bank digital currency must not turn into a store-of-value instrument, but will remain a means of payment.
The limits are intended to protect commercial banks from a mass outflow of deposits. If citizens are able to hold unlimited amounts in digital euros, in moments of crisis money will quickly move out of banks into direct ECB liabilities. This will shrink the lending base and increase the volatility of bank funding, as experts have already warned.
The EU Council emphasised: the digital euro is an evolution of money and a tool for financial inclusion. However, the ceiling on balances in wallets and accounts will be set by the ECB itself within the framework of an overall limit, which will be reviewed at least once every two years. The goal is to prevent the currency from being used as a "store of value" and to minimise risks to financial stability.
Critics see in this compromise protection of banks from competition. Without limits, the digital euro could offer citizens a risk-free alternative to deposits, reducing banks' income from cheap funding. Studies show that such restrictions could cut banks' net interest income by an average of 7%, and for smaller players by up to 13%.
At the same time, supporters of the project note: the limits make it possible to preserve the role of commercial banks in creating money through lending. The digital euro will complement cash and bank accounts, not replace them. Offline payments and free basic services for consumers should make it convenient for everyday transactions.
The EU Council's decision accelerates the legislative process. Final regulation is expected to be adopted by the end of 2026, and the first issuance of the digital euro is possible in 2029. The main question remains the same: will it be possible to create a modern payment instrument without undermining the foundation of the existing financial system.
