Economists at the Bank for International Settlements (BIS) have suggested that introducing a retail central bank digital currency (CBDC) with a rate of issuance of 40% of Gross Domestic Product (GDP) could bring significant macroeconomic and financial stability gains in the long run.

The report found that with a rate of issuance of 30% of GDP, a CBDC could add almost 6% to a country’s output, and contrary to popular belief, could enhance financial stability with banks' balance sheets growing in the long run.

However, the authors suggest that the optimal policy outcomes come with an even higher rate of 40% of GDP, which is significantly higher than any currently proposed caps. The researchers do not anticipate consumers holding the majority of CBDCs, with banks switching a sizable proportion of their government bond holdings into CBDCs.