In the modern times, an experienced Scottish goldsmith, William Paterson, is credited with the idea of setting up a national bank in Britain in 1688, which gave birth to the Bank of England. The modern day banking, in its simplest form, is meant to facilitate financial intermediation between the savers and the borrowers.
Further to the above, a number of other possible advantages of CBDCs have been identified. The potential to enhance the safety of the payments system through a back-up given mounting operational risks in some segments, or its cost effectiveness, by saving on the distribution of cash, are included among them.