Could the issuance of CBDC reduce the likelihood of banking panic?

Soraya Ben Souissi, Mahmoud Sami Nabi

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).

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Year of publication:	2023
Authors:	Ben Souissi, Soraya ; Nabi, Mahmoud Sami
Published in:	Journal of central banking theory and practice. - Warsaw : De Gruyter Open, ISSN 2336-9205, ZDB-ID 2675850-7. - Vol. 12.2023, 2, p. 83-101
Subject:	Central bank digital currency \| liquidity \| financial stability \| Virtuelle Währung \| Virtual currency \| Zentralbank \| Central bank \| Geldpolitik \| Monetary policy \| Bankenkrise \| Banking crisis \| Liquidität \| Liquidity \| Finanzkrise \| Financial crisis \| Bankenliquidität \| Bank liquidity

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.2478/jcbtp-2023-0015 [DOI] hdl:10419/299073 [Handle]
Classification:	E31 - Price Level; Inflation; Deflation ; E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; G11 - Portfolio Choice
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10014316653