EU finance ministers have reached an agreement to impose holding limits on the digital euro, moving closer to the launch of a central bank digital currency. This decision was made during the Eurogroup press conference following the Economic and Financial Affairs Council meeting in Copenhagen. Officials stated that they have established procedures for setting caps on individual holdings. Discussions have highlighted holding limits between the European Central Bank (ECB) and national central banks, with the ECB seeking to balance privacy concerns and the implications for commercial banks. ECB board member Piero Cipollone emphasized that the digital euro aims to ensure all Europeans have access to a reliable means of payment, even during disruptions, while preserving user privacy. The ECB has been exploring the digital euro for several years amidst the rising competition from dollar-based stablecoins, further motivating discussions on regulatory measures within the EU. The focus remains on integrating the digital euro effectively into the financial ecosystem while addressing the challenges posed by the growing use of cryptocurrencies and stablecoins.

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