Central bank digital currency of no benefit to financial stability – RBNZ research
CBDC could make New Zealand’s banking sector more susceptible to spillovers
An economist from the Reserve Bank of New Zealand finds there are no financial stability benefits when issuing a central bank digital currency.
In the latest of a series of research, Amber Wadsworth evaluates the pros and cons of issuing a CBDC. For financial stability, key concerns are an increase in operational costs, the risk of bank runs and a reduction in the resilience of the sector.
“A central bank-issued currency introduces some costs to financial stability,” Wadsworth says. Banks
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