Central banks will have to keep things on an even keel here. The digital euro needs to be designed such that it offers clear added value on the one hand and its risks remain under control on the other. To contain those risks, limitations will be necessary, which are likely to make the digital euro less attractive.
This is expected to fuel an increase in the industry’s investment management activities as new clients with lower amounts of investible funds can now be tapped. Financial inclusion was a major consideration in crafting this policy amendment. We want to make investing more accessible, while providing retail investors with a greater degree of protection.