SCT Inst stands for SEPA Instant Credit Transfer scheme. It was introduced by
the Euro Retail Payments Board (ERPB) in order to enable rapid electronic
payments within the eurozone. In a nutshell, SCT Inst facilitates an instant
or near-instant clearing of a transaction between originator and beneficiary.
Potato, po-tat-o.
ERPB = Central Bank
Credit Transfer Scheme = Digital Currency
Put them together and what do you get --- effectively a CBDC system denominated in Euros instead of Dollars --- minus all the hyperbola, misinformation and doomsday prophecy attached to CBDC on this side of the pond.
Shifting retail banking to the central bank
Nothing is being shifted. The existing system (ACH) is being modernized. No banks will be killed in the production of a CBDC.
What you want is instant interbank settlements that have existed for 20+ years in some places.
The scope of CBDCs is way broader than that. If no commercial bank is impacted by a CBDC then it wouldn't be a central bank digital currency, just a digital currency, and that's already the case for most of the money supply. If you use the term CBDC you're implying that the central bank would oversee a much bigger part of the money creation.
Commercial banks will be impacted --- in a good way. Interbank transactions will take place instantly 24/7/365 at zero cost.
Consumers will be impacted too --- in a good way. They'll be able to transfer money from their bank account to merchants, friends and family instantly 24/7/365 at zero cost --- no delays, no fees, no processors, no paper forms, no middlemen --- something that never existed before --- at least not in the USA.
Basically, a CBDC will make it possible to add digital wallet functionality to all bank accounts.
Like it or not, a CBDC is coming. The financial case for it is overwhelming.
You'll still spend USD just like before --- not CBDC tokens. The only thing the consumer will see is new capabilities and transaction speed that didn't exist before.
Basically, a CBDC will be used to add digital wallet functionality to everyone's existing bank account.
Shifting retail banking to the central bank brings a lot more questions than just worry about what happens to cash.