If the market players were to massively move away from the use of banknotes and deposits in euro, a central bank could find it more difficult to attain its objective of price stability.
Indeed, by substitution for regular money such as banknotes and deposits in euro, widely adopted types of alternative money could significantly reduce a central bank’s control over monetary conditions, such as its ability to steer interest rates 12. Furthermore, many central banks, among which the Eurosystem central banks, are entrusted with the task of contributing to the stability of the financial system 13.