Bank of America: "Digital euro will have a negative impact on banks in the EU"

Analysts Bank of America warned, that in the case of the release and widespread adoption of digital euros, The activities of banks working in the European Union may seriously suffer.

The Bank of America analysts reported, that electronic accounts in euros for individuals, If they are be considered a popular alternative, reduce the volume of deposits of commercial banks and, perhaps, Damage to the banking sector of the region.

"Money, Like data on the Internet, have a strong tendency to monopolization ", – Analysts noted in the report.

European Central Bank (ECB) concerned about the work of the Libra Association (Now Diem), aimed at that, To release
Stebblecoin, secured by the dollar, as well as the ongoing efforts of China to launch a digital yuan. According to analysts, "ECB is aware of the risk" of the monopoly and, perhaps, considers, that "it is better to act quickly and release digital euro".

Bank of America analysts consider digital euros as a “risk of deterioration of the situation” for banks. In their opinion, simultaneously reducing the costs and complexity of the payment chain for individuals, He will also reduce the need for intermediaries.

“Digital Euro, which is suitable for transactions, It may be a convenient replacement for current accounts ", – Analysts added.

According to the report, Banks in Europe are already faced with significant requirements for deposits within the current financial system. Therefore, competition, emanating from a widespread digital euro, can even more worsen the situation with deposits. If digital euros appear "in the form, which will be massively accepted by the population, This will become a clear negative factor for the value of the banking industry ", – Analysts warn.

Recall, that recently several experts from the central banks of European countries agreed
With that, that it will take four or five years to create a proof of concept for the digital euro. Earlier, the President of the European Central Bank Christine Lagard said, what, In her opinion, EU money regulation bodies can release digital euros in the next two to four years.