European Central Bank report: Digital Euro will partially replace cash and bank deposits.

According to a message from 深潮 TechFlow on April 20, reported by Bitcoin.com, the latest report from the European Central Bank ( ECB ) shows that although the digital euro project has not yet received final approval, the Central Bank Digital Currency ( CBDC ), once launched, will significantly change the way Europeans use money.

Research predicts that the digital euro has the potential to replace 5 euros out of every 10 euro banknotes in circulation. Meanwhile, for every 10 digital euros issued, 3 will be replaced from bank deposits.

The report analyzes the impact of three different adoption scenarios:

• With a low adoption rate, approximately 15 billion euros in banknotes will be replaced;
• Under a moderate adoption rate, approximately 125 billion euros in banknotes will exit the market;
• With a high adoption rate, the digital euro will replace approximately 256 billion euros in cash.

However, even in the highest adoption rate forecasts, the use of the digital euro remains relatively limited, as the total amount of cash in circulation in the Eurozone currently exceeds 1.56 trillion euros.

Unlike the recent opposition in the United States to the issuance of a digital dollar, Europe is actively promoting the digital euro project to counter the growing influence of dollar stablecoins and other cryptocurrencies. European Central Bank Executive Board member Piero Cipollone stated in January this year that the digital euro would serve as a "firewall" against the rise of these unbanked solutions.