Big Banks Challenge ECB’s Digital Euro Over Cash Flight Fears

The European Central Bank ’s effort to build a homegrown payments system using a digital euro is being slowed by European banks’ concerns that the solution would lead to customers transferring cash from banks to an ECB wallet, Reuters reported Thursday (May 21). These concerns have held up European Parliament legislation to issue a digital currency for three years, according to the report. Banks are also exploring alternatives to a digital euro, such as a euro-pegged cryptocurrency.