Reuters reports that Bundesbank President Jens Weidmann said that a digital euro, currently under design by the ECB, should have a limited role initially as it could disrupt the bank sector and overly extend the role of central banking.

"A gradual approach might make sense given the risks involved - that means a digital euro with a specific set of features and the option to add further functionalities later," Weidmann said.

The ECB gave the digital euro a green light earlier this summer but the actual launch of the currency could still be around five years away.