[xmly]

The bank can bankrupt. So your money in bank has credit risk and liquidity risk. But central bank(federal reserve) can "print" dollar, so they will never bankrupt, hence your CBDC has no credit risk or liquidity risk.

However, it puts the central bank being the only bank that handles the clearance/settlement. So it has higher political risk for holders. For example, you can store your dollar bills into a bank which does not follow the order from US government. But if you have CBDC, the federal reserve can simply freeze your balance.

[wpietri]

Are you talking about non-US banks that have dollar-denominated accounts? Because US banks are insured by the same federal government, making the credit/liquidity risk the same.

[xmly]

FDIC has a limit 250K.