The Reasons Behind Digital Euro Holding Limits: Preserving Financial Stability or Bank Profitability?

In this paper, we discuss:

• Why the digital euro’s holding limit may protect bank profitability more than financial stability;
• How strict holding limits could undermine the digital euro’s practical utility;
• Why alternative tools could better address financial-stability risks;
• How the digital euro raises broader questions over central-bank funding and credit allocation.

Download PDF: Digital Euro Holding Limits – September 2026