According to the report, risks to financial stability depend on the take-up, or rate of adoption, of a CBDC as well as bank funding, lending and resilience. If take-up is too fast, it could throw the existing financial and banking systems out of balance, the report says. The prevailing fear is that the use of any CBDC would require a shift of funds out of bank deposits and into digital cash. Without bank deposits, banks won’t have the funds to issue loans that help them make money: should CBDCs rapidly replace bank deposits, they could reduce banks’ ability to lend, leading to instability in the financial system.

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