ECB Stress Test Reveals Potential for €700 Billion Bank Outflow in Crisis

A new stress test by the European Central Bank (ECB) reveals that the introduction of a digital euro could lead to significant liquidity challenges for banks during times of financial crisis. The simulation found that, under extreme scenarios, up to €700 billion ($811 billion) might move out of bank deposits into ECB-backed digital wallets as individuals rush to shift their funds towards a state-backed alternative during market panic. The test was conducted at the request of EU lawmakers.