Moreover, the parallel coexistence of central bank digital currency with retail banking deposits  6  See, for example, the recent joint Committee on Payments and Market Infrastructures and Markets Committee report “Central Bank Digital Currencies,” March 2018, https://www.bis.org/cpmi/publ/d174.pdf.
A Fed-issued digital currency might have implications for the rates and terms of funding for U.S. financial institutions and even the U.S. government as well as the transmission of monetary policy that I will not discuss here. -6could raise the risk of runs on the banking system in times of stress and so have adverse implications for financial stability.