2. financial. Financial risks include exchange rate risk, higher lending costs and operational risks. A CBDC should be just another form of central bank money, but could governments be tempted to exchange it for current forms of money in the national currency at less than 1:1? CBDCs could result in higher lending costs. In its recent discussion paper on “New forms of Digital Money” the Bank of England identified increased lending costs as a risk resulting from a decrease in bank lending with CBDC and an increase in more expensive market-based financing. https://www.finextra.com/blogposting/21584/the-risks-to-society-of-central-bank-digital-currencies