Discussants stress empirical puzzles: China wallet design, flight-to-safety and digital-divide risks

After the presentations, discussants and participants raised empirical and policy issues central to interpreting results.

Xiaoying of Indiana University urged empirical work tying CBDC access costs and liquidity services together, citing Chinese e-CNY wallet types and usage patterns and reporting bank transaction-data evidence that lower-income depositors reduced bank holdings relative to higher-income customers after CBDC introduction. In the session she noted that some Chinese low-cost wallets limit single transactions (about 2,000 yuan, roughly $300) and questioned which CBDC attributes households value most.

Hector Perez of the IMF praised the empirical approach in the Canadian study but urged the authors to consider a “flight-to-safety” channel in which households move deposits into CBDC during stress, and to explore how banks could respond by competing in product space (bundling mortgages, fees) rather than only via deposit rates. He also highlighted digital-literacy and adoption barriers that are most acute in rural or low-income markets.

During a brief question-and-answer exchange an audience member asked whether branch-network effects in the estimated model proxy for product complementarity rather than necessary customer service for digital products. The presenter responded that the data show branches still matter for customer service and onboarding, and that trust and in-person support may partly explain branch value.

No consensus policy action followed; the discussion identified empirical priorities and open channels for future research.