"1 Central bank digital currency would undoubtedly satisfy that demand. It would be a substitute for cash. Some believe that it would even be beneficial. Unlike cash, digital central bank money could bear interest.
To protect banks from new problems down the road, and to safeguard the Deposit Insurance Fund, supervisors must insist on high standards for lending, risk management, and governance. At the same time, it is important for banks, for their communities, and for the national economy that banks lend to creditworthy borrowers. Lending to creditworthy borrowers, after all, is how banks earn profits.