Central bank digital currencies, or CBDCs, would only have marginal effects on the economy and households’ welfare, according to a working paper published by the Bank of Korea.

Seonghoon Cho, an economics professor at Yonsei University, distinguishes between two types of bank deposits: non-interest-bearing demand deposits, or debit; and interest-bearing time and savings deposits.

He argues that debit provides liquidity, while interest-bearing time and saving deposits are assets to households. He