Private Sector and its Opportunity to Shape CBDC

Sun, Oct 2, 2022, 12:00 AM

Commercial banks have a pivotal role to play and a unique opportunity to shape the course of CBDC at its foundation. The main risk for Commercial Banks posed by a CBDC issuance is the risk of structural bank disintermediation, which consist of the shrinking of the commercial banks’ balance sheet due to a large-scale migration from bank deposits to CBDCs.