It is also important to consider whether CBDC would have legal tender status, depending on the design. While the legal framework is well-established with regard to the rights  14  Michael Kumhof and Clare Noone, “Central Bank Digital Currencies—Design Principles and Balance Sheet Implications,” Bank of England Staff Working Paper no. 725 (London: Bank of England, May 2018), https://www.bankofengland.co.uk/-/media/boe/files/working-paper/2018/central-bank-digital-currencies-designprinciples-and-balance-sheet-implications.
These excess liquidity holdings were first a sign of uncertainty and mistrust, and then of a dysfunctional money market. As a result, central bank operations substituted for market-based intermediation in times of crisis.