When a crisis arrives, central banks usually say that they will do whatever it takes to solve it, which usually means ridiculous amounts of money being printed a large amount of debt being bought. The traditional banking system "multiplies" the effect as a result of the fiduciary system (you can lend more than you have).
With the new digital central currencies such as yuan, euro, dollar,... anyone could potentially hold an account on a central bank skipping the intermediaries. I think that this will have a negative effect on the ability to cope with further crisis by monetary policies. The risk should not be ignored.
I am yet to fully understand what this central bank digital currency is all about and how it is going to work. OK I do understand that it is going to be paired with the Fiat currency, which means that both of them are going to have the same value, but what I’m Yet to understand is whether these central bank digital currencies are going to be a different currency/assets on their own that can be printed by the government at anytime and different from the fiat, or they would just be linked to the current Fiat that we are making use of now, meaning that every time one Fiat is printed, it is also represented in a digital form.
Although I don’t really see the need for these central bank digital currencies, because we already have means for doing transactions online, so it’s totally unnecessary, we have bank apps and we have PayPal, so what’s the need?