In addition, there is also the competition issue in the payment sector. Usually private players tend to dominate and create positions of competitive advantage by exploiting the benefits of the network effect. The formation of these dominant positions can develop rapidly and create risks of market abuse behavior.
A CBDC could therefore be a benefit as it could improve an efficient and competitive payments market, reducing the possibility for a private company to create a dominant position. 4. Wholesale CBDC: a hint  Since wholesale and retail CBDC are complementing each other by addressing the different needs of different users, let me now touch upon the implementation of a wholesale CBDC.