:"The banks are getting ready to close. So, that is all the precursor for the Central Bank Digital Currency."of SVB following a slump in technology stocks and a jump in interest rates that hurt the bank's balance sheet and sparked a run on deposits, which also affected other financial institutions.
Lipsky said the Federal Reserve has moved closer to creating a digital currency, but only for bank-to-bank transactions. He told AFP implementation at the wholesale level"is probably one to three years away," and that for consumers it could take another three to five years.. Lipsky said CBDC is a reflection"that people want to use less cash" and is not connected to bank failures., a senior fellow at the Peterson Institute for International Economics specializing in financial technology and digital currencies, said a CBDC would not prevent such failures.
"If you create one of these things, the moment there is any instability people would take their money out of the banks and put it into a CBDC, which wouldn't lead to any useful credit being created," he added."It would make the risk of bank runs much worse."of SVB was not caused by regulators but came as a result of a run on deposits after recent interest rate hikes.