The inescapable reality is that, while most insurance companies operate in a reputable and responsible manner, there are a few that adopt questionable industry practices, oft-times exploiting the antiquated and grossly inadequate insurance legislation. As an example, in order to capture market share, some companies are prepared to under–price premiums, while operating with inadequate claims reserves.
If Danmarks Nationalbank were to issue central bank digital currency, our role in the financial system would change. Danmarks Nationalbank would go from being banker to the banks to being banker to the general public. In that way we would be competing directly with the commercial banks, e.g. by offering deposit accounts and payment services, a role not traditionally assumed by central banks.