CBDC little threat to Canadian bank liquidity – paper
Bank of Canada research says most bigger banks have enough funding to handle retail CBDC competition
Analysis by the Bank of Canada concludes that most large Canadian banks would remain sufficiently liquid if a retail central bank digital currency (CBDC) were introduced.
Some experts have expressed fears that retail CBDCs could compete with or replace bank deposits, or that depositors could run to CBDCs during a crisis.
The Bank of Canada analysts performed several stress tests, hypothesising a 50% decline in funding from current accounts and certain highly liquid savings accounts.
The
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