[34]  There are two reasons for this. First, the costs of protecting the economy from upside risks to inflation are comparatively small, as the policy rate can be brought back to neutral levels faster than if policymakers acted under the assumption of low inflation persistence (Slide 16, left-hand side).
In this model, the value – theoretically – could be stored locally, on some sort of device or a mobile wallet. It could thus resemble cash – universally available digital cash, guaranteed by the central bank. We may also discuss account-based retail CBDCs.