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The offline digital euro and holding limits: a user-centred approach

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Listed:
  • Frank van der Horst
  • Anneloes van Gent
Abstract
The national central banks of the Eurosystem are investigating the possibility of issuing a retail central bank digital currency (CBDC) – the digital euro – alongside cash. The digital euro would be subject to a holding limit, meaning there would be limit to the amount of digital euro an individual can hold. A holding limit would prevent excessive outflows from the banking system, which could endanger financial stability. For the offline digital euro, a specific consideration for setting a holding limit is also to mitigate anti-money laundering/ countering the financing of terrorism (AML/CFT) risks. At the same time, given that the digital euro is a public means of payment, it is important that everyone is able to use it. A holding limit should therefore not hamper the usability of the digital euro. In existing research on CBDC, this user-centred perspective to holding limits has received limited attention. The added value of this study lies in taking a user-centred perspective. De Nederlandsche Bank conducted an experiment on offline digital euro holding limits among 2,000 adult participants in the Netherlands.

Suggested Citation

  • Frank van der Horst & Anneloes van Gent, 2025. "The offline digital euro and holding limits: a user-centred approach," Occasional Studies 2502, DNB.
    • Handle: RePEc:dnb:dnbocs:2502
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    File URL: https://www.dnb.nl/media/vbrkbg4x/dnb-os-a5-holding-limieten-digitale-euro.pdf
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    References listed on IDEAS

    as
    1. Carin van der Cruijsen & Lola Hernandez & Nicole Jonker, 2017. "In love with the debit card but still married to cash," Applied Economics, Taylor & Francis Journals, vol. 49(30), pages 2989-3004, June.
    2. Carin Cruijsen & Frank Horst, 2019. "Cash or Card? Unravelling the Role of Socio-Psychological Factors," De Economist, Springer, vol. 167(2), pages 145-175, June.
    3. Meller, Barbara & Soons, Oscar, 2023. "Know your (holding) limits: CBDC, financial stability and central bank reliance," Occasional Paper Series 326, European Central Bank.
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    6. Rhys Bidder & Timothy Jackson & Matthias Rottner, 2024. "CBDC and Banks: Disintermediating Fast and Slow," Working Papers 202407, University of Liverpool, Department of Economics.
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    Full references (including those not matched with items on IDEAS)

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