(12)While Directive (EU) 2015/2366 requires NB-PSPs to protect their clients’ funds by opening safeguarding accounts or by other means, it is not the core function of central banks to act as a substitute for credit institutions in providing safeguarding services. The offering of safeguarding accounts by central banks may impact the overall safety and soundness of the monetary policy transmission mechanism and the financial system at large, and significant risks for the achievement of the Eurosystem’s objectives, specific to central banks, could arise. Such risks include deposit outflows from credit institutions, for instance in a scenario where deposits would be held in the central bank leading to a progressive disintermediation of the commercial banking sector which would have a negative impact on the availability of liquidity and thus hinder the effective transmission of monetary policy. Similarly, a synthetic central bank digital currency, for example electronic money issued by an NB-PSP and fully backed by central bank money, could blur the distinction between central bank money, a credit and liquidity risk free settlement asset, and commercial bank money. Depositing customer funds at central banks could risk conflating electronic money and other forms of money, including central bank money, in the mind of the public, thereby distorting perceptions of risk.