ContextSpeech at the autumn meeting of the Wildbader Kreis in Darmstadt; the Bundesbank is Germany's central bank within the euro system and prepares a possible digital euro.
Why it mattersNagel argues that holding limits and banks' role can make a digital euro safe.
Problems raised
Digital payments are dominated by non-European players.
A digital euro could cause deposit outflows in times of stress.
Banks worry about their role in a digital euro.
Solutions proposed
Issue a digital euro while letting banks distribute it.
Set holding limits to protect financial stability.
Use the digital euro to foster innovation with the banking sector.
