- Analytics
- News and Tools
- Market News
- Central bank digital currencies to drastically change macrofinancial equilibrium – Natixis
Central bank digital currencies to drastically change macrofinancial equilibrium – Natixis
FXStreet reports that analysts at Natixis focus on the effect of the creation of a CBDC (central bank digital currency) on the macro-financial equilibrium.
“Let us assume for example that the ECB introduces a central bank digital currency in the eurozone and that it is a retail currency accessible to all economic agents. Economic agents would convert bank deposits into this CBDC. This leads to a fall in bank deposits and in banks’ reserves at the central bank; in economic agents’ assets, the replacement of deposits with the digital currency and in the central bank’s liabilities, the replacement of banks’ reserves with the digital currency. If banks’ reserves at the central bank fall, there will be a fall in bank credit, leading to a further fall in deposits. The risk with the introduction of a CBDC is that credit may contract due to the fall in banks’ funding.”
“The central bank can restore the banks’ reserves by refinancing them (by buying or taking in repo more financial assets held by banks, such as government bonds). This would restore banks’ liquidity via a more expansionary monetary policy.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
