CBDC would not destabilise Italian banks, research finds

But fully anonymous digital currency could increase flight from deposits, Bank of Italy paper says


The eurozone could introduce a retail central bank digital currency (CBDC) without destabilising the Italian banking sector, a Bank of Italy working paper says. 

But how it was introduced would determine its impact on banks, argue Simone Auer, Nicola Branzoli, Giuseppe Ferrero, Antonio Ilari, Francesco Palazzo and Edoardo Rainone.

The researchers assess the impact of a CBDC on Italian banks’ funding structures and profitability during “normal times”. They find that the impact would be manageable

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