The risks and benefits would be affected by the characteristics of the CBDC, but in any event the risks would not disappear altogether. The business case for introducing CBDCs remains at best unclear. However, like all issues related to technological innovation, the costs, benefits and risks of digital currencies are likely to change rapidly in the future.
Although new lending is increasing, year-on-year growth in bank credit to both the household and non-financial corporate sectors remains negative. Against this background, the countercyclical capital buffer (CCyB) rate on banks’ Irish exposures is maintained at zero per cent. The countercyclical capital buffer (CCyB) is a time varying capital requirement which applies to inscope banks and investment firms.