According to analysts at the American banking house Morgan Stanley, the introduction of the digital euro may increase the motivation to transfer deposits in bank accounts to the digital euro. In this way, up to eight percent of deposits could leave the banking sector.
The European Central Bank is expected to accelerate preparations for the introduction of the digital euro in the coming months. Although the formal launch will take a few more years, estimates are already being made of what this could mean for the European financial system.
According to an analysis by the US investment bank Morgan Stanley, people in the eurozone could transfer about 873 billion euros to the “wallet” of the digital euro, which represents about eight percent of the current volume of bank deposits. However, this is an estimate in the basic conservative scenario. Analysts do not rule out that it could be more than 12 percent.
This share would be significantly unbalanced across euro area Member States. While in Luxembourg the conversion would concern about two percent of deposits, in countries such as Latvia, Lithuania or Greece it could be up to seven times more.
