Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299073 
Year of Publication: 
2023
Citation: 
[Journal:] Journal of Central Banking Theory and Practice [ISSN:] 2336-9205 [Volume:] 12 [Issue:] 2 [Year:] 2023 [Pages:] 83-101
Publisher: 
Sciendo, Warsaw
Abstract: 
This paper delves into the relationship between the issu-ance of Central Bank Digital Currencies (CBDC) and the likelihoodof banking panic. The issuance of CBDC acts as a disturbing shockthat incentivizes depositors to withdraw all/part of their depositsfrom the commercial banks, to swap it for CBDC which are offeredby the central bank. We determine a variety of tools that centralbanks can use in order for the issuance of CBDC to act as a stabi-lizing factor of the banking system (by reducing the likelihood ofbanking panic).
Subjects: 
Central bank digital currency
liquidity
financial stability
JEL: 
E31
E42
G11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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