About this article
Published Online: May 24, 2023
Page range: 83 - 101
Received: Feb 08, 2022
Accepted: Jun 13, 2022
DOI: https://doi.org/10.2478/jcbtp-2023-0015
Keywords
© 2023 Soraya Ben Souissi et al., published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.
This paper delves into the relationship between the issuance of Central Bank Digital Currencies (CBDC) and the likelihood of banking panic. The issuance of CBDC acts as a disturbing shock that incentivizes depositors to withdraw all/part of their deposits from the commercial banks, to swap it for CBDC which are offered by the central bank. We determine a variety of tools that central banks can use in order for the issuance of CBDC to act as a stabilizing factor of the banking system (by reducing the likelihood of banking panic).