Freitas, Miguel Lebre deNunes, AndréBarbosa, Vanessa Serino2025-08-132025-08-132025-01-202025-01-20http://hdl.handle.net/10362/186385The Digital Euro is a digital currency to be issued by the ECB and made available to residents of the Euro Area. This thesis examines the potential impact of a CBDC on financial stability, with a focus on institutions' balance sheets. The study investigates the implications of a CBDC on capital adequacy, credit risk, and liquidity risk, addressing gaps in the existing literature and providing a comprehensive analysis of key balance sheet components. By exploring a scenario with no holding limits, the research offers insights into strategic and regulatory challenges associated with CBDC integration, intending to ensure stability and resilience in the financial system.engDigital EuroFinancial stabilityDeposits outflowFunding sourcesLiquidity risksMoney creationCapital adequacyCapital requirementsNPL ratioBank riskmaster thesis203960947