✉news BusinessBanking first seen 11 h ago, last 4 h ago, peak #3
Bruegel urges Europe to allow interest on digital money
Original: Europe should stop banning interest on digital money
The Bruegel think tank argues that the European Union should lift its prohibition on paying interest on digital money, including any future digital euro. The piece contends that banning interest undermines the attractiveness of digital cash compared with bank deposits and hampers monetary policy transmission. The debate touches on how a central bank digital currency could coexist with commercial banking without draining deposits.
Why now: Policymakers are actively designing a digital euro and the question of whether it should earn interest is a live design issue.
BruegelEuropean UnionEuropean Central Bankdigital euro
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