The central bank could limit such risks – for example by setting a ceiling on the amount of CBDC that each individual investor can hold, or by bringing the remuneration to zero for holdings of CBDCs above a certain threshold – but this would raise a number of technical issues.
The key to a continued improvement in living standards is maximising productivity growth through appropriate policies, including investment in infrastructure and education, measures to boost competition in the non-traded sectors, providing a support environment for R&D, as well as a continuing focus on stability in the public finances.