Concluding Remarks Today, I have explained the prudential policy approach to financial vulnerabilities arising from chronic stresses. As advanced economies have never before been confronted with the chronic stress of a persistent decline in population and the number of firms, how to overcome this stress is a considerable challenge.
In many countries, one of the reasons for pursuing CBDCs is to increase financial inclusion. Furthermore, cross-border payments made in central bank money may contribute to lower risk. However, increased involvement of central banks entails its own risk: the risk of crowding out private competitors. CBDCs should therefore be designed around the principle of "do no harm".