Yes. If you want to invest your money with a chance you will lose it in exchange for earning interest, invest it into a bank savings account.

If you just want an electronic money account with which you can send and receive and store electronic funds, and not risk losing it, keep it with the government.

And add legislation with it that requires the government to provide everyone with an account, even criminals, and it cannot be closed, and any seizures have to be from court orders, but the ability to transfer/store money electronically remains an inalienable right.

He's correct in that you'd get a loan or mortgage from a bank still, but incorrect that banks lend out deposits though - a bank loan directly creates new money, so if everyone was using a CBDC and had their money kept in their digital wallet you would no longer need a bank account for storing money, but the only thing that would change about getting a mortgage is that repayments would come from your wallet, not your bank account.

Except that they do... That's how banks make money. With interest. They lend it as mortgage or as T-bills lending it to the government.

Just look at the balance sheet of SVB