Since the beginning of the year 2021, the Central Bank of Europe has expedited its process of developing the central bank digital currency (CBDC). The European Union is also backing the efforts for the development of the digital euro.
It is an attempt made by Europe to ensure it is able to compete with the digital currencies that are currently in the making from Russia and China. Among all other countries, China is the one that is currently taking the lead when it comes to the development of CBDC.
As the reports confirm, China is at the top of the digital-yuan drive and it is going to launch it by the end of the running year.
Therefore, Europe is also trying its best to launch the central bank digital currency (digital euro) to make its presence known.
Looking at the efforts being made by the central bank of Europe, Morgan Stanely has run its analysis on the impact of the digital euro when it makes to the commercial markets.
Morgan Stanley is a multinational investment bank that is based in the United States and has a keen eye towards the adoption of crypto and digital currencies.
The investment bank has recently shared its report regarding the estimation it has made about the impact of the digital euro in the markets. The investment giant has revealed what percentage of the digital euro would be observed by the banks once the digital euro is commercialized.
Once the digital euro is launched, it would have a significant impact on the deposits of the Eurozone banks.
The analysts at Morgan Stanley have predicted that once the digital euro (CBDC) is launched, it would end up sucking away 8% of the total deposits currently occupied by fiat deposits in Eurozone banks.
The data was shared by the analyst at Morgan Stanley on Wednesday, June 16, 2021. The analysts have predicted that the majority of the smaller countries would observe a higher percentage of the digital euro as compared to larger cities.
The analysts have even provided names of the countries in Europe that are highly likely to adopt the digital euro more than other European countries. The names of the countries include Greece, Slovenia, Slovakia, Estonia, Lithuania, and Latvia.
The analysts have revealed that they have based the estimates from the stats they were able to collect from the central bank of Europe. The analysts observed the transfers made by the European citizens over the age of 15 into digital euro wallets.
The analysts took into consideration the minimum amount of €3,000 in order to run their analysis and then coming up with the estimates.
According to their estimates, the digital euro would take up around 8% or €873 billion of the total deposits currently occupying Eurozone bank deposits.