Central bank digital currency could worsen panics - Bank of Spain article
Depositors might transfer funds to central bank accounts during financial stress, researcher says
Policy-makers should adopt a “watch-and-wait approach” to central bank-issued digital currencies, an article in the Bank of Spain’s economic bulletin argues.
In Monetary policy implications of central bank-issued digital currency, Galo Nuño notes several kinds of risk associated with central bank-issued digital currencies, or CBDCs. The technological risks are significant and “might cause considerable harm to the economy as a whole”, he says.
Nuño also considers the risks to financial
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