Introducing CBDC as an interest bearing security has its merits, as explained above, but it comes also with great risks. One major question is the following: if money users have access to risk free central bank money, why would they hold risky commercial bank deposits?
In both countries, savings arising from lower interest rates and boom-related windfall  2  BIS central bankers’ speeches  revenues were used to finance expansionary expenditure policies. When interest rate convergence was completed and the initial impact of EMU on growth disappeared, the underlying unsustainable fiscal policies soon became apparent.