Digital Central Bank Money Can Boost Financial Stability: Many central banks are exploring launching digital central bank money, but have so far shied away from doing it. But some argue that CBDC could… CBDC digitalcentralbankmoney cryptocurrency
Many central banks are exploring launching digital central bank money, but have so far shied away from doing it. But some argue that CBDC could increase financial stability.
For example, a European Central Bank report states, «in crisis situations, when savers' confidence in the banking sector as whole wanes, liquid funds could be shifted very quickly from commercial bank deposits to the digital euro.» The Fed worries that «CBDC could make a run on financial firms more likely or severe,» according to a recent study.But a recent working paper from the US Treasury Department's Office of Financial Research , takes a different view.