Digital currencies in financial networks

We introduce a central bank digital currency (CBDC) in the network of financial accounts. Simulating shift deposits by both households and non-financial corporations from banking sector to bank, we model different responses affected institutional sectors. find that introduction CBDC generates funding shortages banks, which may propagate other In addition, significant adjustments balance sheets all sectors trigger large moves securities prices induce changes structure. Finally, extend analysis crypto asset (stablecoin) issued either domestic or foreign entity.