EU cryptocurrency may have limited transactions in the future

The digital currency of the European Union’s central bank (CBDC) may have transaction limits for individuals. This prospect for the yet-to-be-adopted cryptocurrency was suggested by Fabio Panetta, a member of the Executive Board of the European Central Bank (ECB).

The exact limits have not been set, as the digital euro project is still under study at the ECB, so in the discussion, Panetta suggested € 3,000 as a value preservation limit and 1,000 transactions as a monthly limit for transactions with digital assets.

«We will provide access to a means of payment that is relatively limited, there will be no transaction costs because you will only need a smartphone,» Panetta said.

He emphasized that CBDC is not intended to replace cash: «Thedigital euro will be an additional option for retail payments, not a challenge to the functioning of the financial system.» The official also pointed to a limit of 50 euros per transaction, citing anti-money laundering regulations.

However, Christian Lindner, German Finance Minister, expressed concern: «I wonder if people will accept 50 euros, as they can pay hundreds or more in cash. We have to introduce a digital euro that will be really accepted by people, not just politicians.»

It is expected that in February 2023, the European Parliament will vote on the introduction of the digital euro in the EU. And by September 2023, the ECB will decide whether to proceed to the stage of implementing a digital cryptocurrency for the euro area.