CBDC little threat to Canadian bank liquidity – paper

Digital currencies

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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