The European Central Bank plans to set a cap on the holdings of the digital euro.

On December 23, the European Central Bank received support from the EU Council to set a cap on the holdings of the Digital Euro. Regulators are concerned that Central Bank Digital Currencies will siphon off funds from traditional banks and are considering limiting the amount of Digital Euros that citizens can hold to ensure it is purely used for payments. Opponents argue that these restrictions will protect traditional banks from competition and may limit the potential uses of the Digital Euro.