VII. Financial stability aspects of the introduction of a central bank digital currency Zénó Fülöp – János Szakács – Péter Szomorjai – Balázs Varga – Márton Zsigó The introduction of a central bank digital currency can positively impact financial stability among other central bank objectives, including by maintaining the competitiveness of the financial system and making a quasi-risk-free digital payment instrument available to participants in the real economy. At the same time, this new technology can significantly transform banking business models depending on its objectives and the range of payment, saving and possibly lending services taken over by the central bank from commercial banks. This may entail new banking and systemic risks. For the potential introduction of central bank digital currency, it is necessary to start assessing these risks and preparing regulatory and supervisory tools for their mitigation and for the uncertainties of a new setup.
1. Introduction Central banks are increasingly using digital solutions to fulfil their functions. New solutions can not only increase operational efficiency but can also bring about fundamental changes in the activities of the financial system and central banks. One notable example would be the introduction of central bank digital currency (CBDC). In our study, we deal with the effects of this on financial stability objectives.
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