ECB: Digital euro could trigger deposit outflows of up to 700 billion euros in bank runs

A European Central Bank simulation study released 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 capital.