Since this is a central bank initiative, it’s likely that banks will manage it under the central bank’s supervision. With a $250K minimum, transactions will probably be limited to high-net-worth individuals and institutions rather than everyday users.

It should be safer through banks since, in general, banks have insurance coverage, but how that applies to crypto is still unclear. It’s something worth looking into, especially in terms of how funds are protected in case of hacks or insolvency.