It is this appeal, though, that creates dangers. Unconstrained, govcoins could fast become a dominant force in finance, particularly if network effects made it hard for people to opt out. They could destabilise banks, because if most people and firms stashed their cash at the central banks, lenders would have to find other sources of funding with which to back their loans.
A community to discuss the evolution of
central bank digital currencies, CBDC, typically designed for direct fund deposit to central banks, bypassing conventional lenders like retail commercial banks.