EU Council Backs ECB’s Digital Euro Holding Caps

ECB and EU Council support €3,000 cap on digital euro holdings, safeguarding stability.

The European Central Bank, in collaboration with the Council of the European Union, has officially endorsed holding caps on digital euro balances to maintain financial stability.

The European Central Bank (ECB), along with the Council of the European Union, has endorsed holding caps on digital euro balances. The decision aims to maintain financial stability by limiting digital euro holdings to €3,000 per person.

Led by the ECB, the digital euro project has moved into its next phase with official backing. The preparatory work ended in October 2025, focusing on potential issuance by 2029, subject to legislation passing by 2026.

The ECB’s holding cap initiative aims to safeguard financial systems by limiting outflows from traditional banks. This measure could mitigate potential competition with cryptocurrencies, aligning the digital euro with the Eurosystem’s legal tender guarantees.

Regulatory measures and technical analysis test limits seek to prevent bank deposit outflows. ECB concludes that a holding cap of €3,000 poses no risk to financial stability, even during crisis situations, with EU backing this strategic decision. The Council of EU backs these caps, as endorsed in ECB plans:

The ECB’s preparation phase concluded in October 2025, advancing technical work toward potential issuance by 2029, pending 2026 legislation.

No past events match the digital euro initiative, which follows the June 2023 Single Currency Package. This legislative proposal pairs digital euro introduction with reinforced roles for cash as legal tender.

According to Kanalcoin, this strategic cap aligns with past regulatory goals, focusing on stability. Historical data suggests such measures can effectively control liquidity risks, ensuring smooth integration into existing monetary systems.