How would digital money affect the role of banks as financial intermediaries, and would it make the financial system more, or less, stable? These are issues on which much more reflection is required, hence our great caution. How does the ECB’s new TARGET instant payment settlement (TIPS) initiative factor into this? This is actually my last point.
The EU even reached an agreement where the EU itself would secure 750 billion euro from the markets and distribute it among the Member States. In addition to direct financing, countries in Europe made changes to insolvency laws to prevent companies going bankrupt. In several countries a moratorium was put in place to help households and companies with debt repayments.