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Original Article | Volume 2 Issue 4 (ACR, 2025) | Pages 1405 - 1411
The Impact of Central Bank Digital Currencies on Commercial Banking Stability: A Global Perspective
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1
Associate Professor, Faculty of Management, SRM Institute of Science and Technology, Ramapuram, Chennai.
2
Assistant Professor, Faculty of Management, SRM Institute of Science and Technology, Ramapuram, Chennai.
3
Associate Professor, Faculty of Management, SRM Institute of Science and Technology, Kattankulathur, Chennai.
Under a Creative Commons license
Open Access
Abstract

The monetary footprint of the globe has got a game changer technique and it is the Central Bank Digital Currencies (CBDCs). As the issues on whether or not to rely on digital kinds of currencies warranted debate between the governments and the central banks of countries, it was just but natural that the dynamics that currencies of this kind had on the stability front of the commercial banks must have emerged as the sudden need to research. They, in their turn, the hypothetical repercussions, which the CBDC s will cause on the monetary stability of the commercial banks will be analyzed by the author in the paper at hand. The remaining questions that address the nature of CBDCs invoked by the paper entail the effects that CBDCs can have on deposit taking and lending business as well as the implications of CBDCs on the normal financial intermediation and the monetary policy. The consequences are: the organization of the supplement to the payments systems in the form of the CBDCs would perhaps be efficient to encourage the development of the financial inclusion that, however, would mean the menace to the accepted commercial banks in the respect the stability of the funds, benefits and the competition of the commercial banks and the central bank. The contribution of the regulatory systems in lowering the risk potentially presented with the launching of the CBDCs and the form in which the policy decisions reached should be comprehensive to the extent to which the banking sphere may be stabilized as well is also presented in the paper. The paper concludes by providing the possible opportunities and dangers that can arise with the introduction of CBDCs and the ways on how the financial stability would be defended against the dynamic aspects of the technology

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