PANews reported on October 11th that Reuters reported that a European Central Bank simulation study on Friday showed that a run on commercial banks could lead to a €700 billion deposit loss, putting about a dozen eurozone banks in a liquidity crisis. The study, commissioned by European lawmakers, aims to assess the risks of a digital euro to the banking sector. The ECB sees digital currency as an alternative to US-dominated payment methods, but bankers and some lawmakers worry it could drain banks of their funds.

The study found that if the limit on individual holdings of digital euros is set at 3,000 euros, depositors will withdraw 699 billion euros, equivalent to 8.2% of retail demand deposits, and small institutions will be more affected. In an extremely unlikely scenario, 13 of the 2,025 banks will exhaust their legal cash buffers. Member of Parliament Markus Ferber believes that small banks may be in trouble because the holding limit is too high and need to be extremely cautious. The ECB said the figures may be overestimated because multiple accounts are not taken into account. Under normal operating scenarios, only slightly more than 100 billion euros will flow out, and holding limits can ensure financial stability. The ECB also simulated situations where individual holding limits were 500 euros, 1,000 euros and 2,000 euros, and the estimated capital outflows were lower. The ECB also stated: "The analysis confirms that holding limits can effectively limit the outflow of bank deposits to a level that ensures the stability of the financial system and supports the correct formulation and implementation of monetary policy."