For example, if people would become reluctant to use cash, if other electronic payment methods could become unavailable owing to natural disasters, or if foreign digital means of payments threatened to largely displace domestic money. But introducing a digital euro could pose challenges. Some are technical, such as cyber risks and the protection of privacy.
Non-resident participation in interest rate derivatives markets for hedging as well trading has been permitted. The regulatory framework for hedging of foreign exchange risk has been liberalized to incentivize investors to hedge their currency risk onshore.