Yes and no. If any bank really imposed a 3k Euro withdrawal limit, every rational* depositor would instantaneously pull 3k Euros out of that bank. In whatever form they could pull out fastest. (Newly-created "digital Euros" would not be my first choice in that chaotic situation.)

On the other hand, sure, it sounds scary. Which is a little strange. It's not obvious that establishing a financial "safe haven" should automatically inspire fear. To offset this hypothetical band run, they could beef up whatever deposit insurance EU bank depositors have. Or if there is solid EU-wide deposit insurance already then ... of course then we could ask an obvious follow-up question about the premise of the article.

*By "rational" here I mean to imply some degree of real-world financial literacy.

> dissuade the public from digital currency.

Did you read the article?

The reason to move to ECB would be for ECB garanteed deposits, which many could find safer than their local bank

> Flight to safety would see 13 banks out of cash