A financial model investigating the issuance of digital money as central bank
digital currency (CBDC) or privately as stablecoins found that a
fully-integrated digital currency would lead to higher and less volatile asset
prices, and household welfare gains are potentially large which could lead to an
increase in consumption by up to 2%. However, a fully-integrated digital
currency would depress bank deposit spreads, particularly during times of
crises, which limits the banks’ abilities to recapitalize losses after a bank
crises. These investment losses, not specifically bank runs, create instability,
the paper argues. Another research paper found that bank runs are not as big as
initially feared. This paper can be found here:
https://www.financialresearch.gov/working-papers/2022/07/11/central-bank-digital-currency/
[https://www.financialresearch.gov/working-papers/2022/07/11/central-bank-digital-currency/]
Both papers focus on the issuance of CBCD and stablecoins and do not include
privately issued money like LETS/Time Dollars and similar privately issued
complementary currency systems.