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Morgan Stanley: Digital Euro Might Suck Away 8% of Banks' Deposits
Summary: A digital euro could suck away 8% of euro zone banks' customer deposits, analysts at Morgan Stanley have estimated, although the share may be far higher in some of the smaller countries in the 19-nation bloc. The European Central Bank is expected to speed up work on a digital euro in the coming months and ...
A digital euro could suck away 8% of euro zone banks' customer deposits, analysts at Morgan Stanley have estimated, although the share may be far higher in some of the smaller countries in the 19-nation bloc.
The European Central Bank is expected to speed up work on a digital euro in the coming months and although a formal launch could be a few years away, economists are looking at potential implications.
Morgan Stanley's analysts said their estimates were based on "bear case" scenario where all euro area citizens above the age of 15 transferred 3,000 euros ($3,637) into what would effectively be an ECB-controlled 'digital wallet'.
By Amy Liu
Tags: Bank,Deposits,Digital Euro,Morgan Stanley
Link: Morgan Stanley: Digital Euro Might Suck Away 8% of Banks' Deposits [Copy]
