Evaluating the Implications of CBDC for Financial Stability
Fintech Notes, November 13, 2025
Source details
- Canonical URL
- Evaluating the Implications of CBDC for Financial Stability
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Bibliographic details
- Authors: Marco Gross, Marcello Miccoli, Jeanne Verrier, Germán Villegas-Bauer
- Published: November 13, 2025
- Series: Fintech Notes
- DOI: https://doi.org/10.5089/9798229030878.063
Overview
- Purpose: Assess how practitioners could evaluate domestic financial stability implications of retail CBDC.
- Scope: Identifies six key transmission channels through which CBDC can affect financial stability—either negatively or positively.
- Approach: Synthesizes findings from existing studies that quantify some of these effects and explores how country-specific characteristics, CBDC adoption, and design features shape outcomes.
- Deliverable: Practical guidance on analytical tools and models to evaluate financial stability risks and on how risks can be contained with appropriate CBDC design and safeguards.
Six key transmission channels
- Bank funding and lending
- Fee income
- Run risk
- Information flows
- Payment system resilience
- (The chapter identifies six channels in total; the content emphasizes these channels as the primary pathways through which CBDC affects financial stability.)
Findings from existing studies
- Some effects of CBDC on financial stability have been quantified in existing studies (the chapter synthesizes these findings).
- Outcomes are shaped by:
- Country-specific characteristics
- CBDC adoption (levels and patterns of uptake)
- CBDC design features
Analytical tools and models
- The chapter provides practical guidance on analytical tools and models to evaluate financial stability risks related to retail CBDC.
- Recommended approach emphasizes combining empirical estimates from the literature with country-specific modeling to assess impacts on bank funding, lending, and run risk.
Design features and safeguards to contain risks
- The chapter discusses how risks can be contained with appropriate CBDC design and safeguards.
- Policy implication: Careful CBDC design and targeted safeguards can mitigate negative financial stability effects while preserving benefits (payment system resilience, information flows, fee structures).
Key publication metadata (as referenced in the chapter)
- Authors: Marco Gross, Marcello Miccoli, Jeanne Verrier, Germán Villegas-Bauer
- Date: November 13, 2025
- Series: Fintech Notes No 2025/008
- Pages: 47
Evaluating the Implications of CBDC for Financial Stability, Marco Gross, Marcello Miccoli, Jeanne Verrier, and Germán Villegas-Bauer (Fintech Notes 2025, 008), accessed 7/1/2026.
Content in this bundle
- FTN008 -- Evaluating the Implications of CBDC for Financial Stability