Sure, unless the central bank decides not to pay it back. I know, slim chance.
The demand deposit is not a liability of the administering bank - it's a liability for the CBI - which can print its own money.
Unless they can print dollars, still not sure this is zero risk for US depositors who deposit dollars. Or Euro depositors, for the same reason.
If - in the scenario as layed out - the central bank decides not to pay it back...
that would constitute a wilful default based on corruption, not for lack of money due to insolvency.
What we’re faced with today with our checkable deposits (demand deposits) under fractional reserve banking is the prospect of bank failures resulting in depositors’ money not being able to be paid to them.
Thus we have in America the FDIC to “insure” deposits, within limits.
On the other hand, if our checking accounts were accounts at a government-owned central bank which could create its own government-issued money, insolvency is a non-issue.
The only issue then is government confiscation, i.e., ignoring any concept of the rule of law and simply stealing.
There’s no way to write a law that will prevent that, because by the time that is happening, the government is ignoring the rule of law.
The key point is that government borrowing is no longer necessary - and the PDF in this article quite clearly speaks about that.
Thus the lenders to government are no longer able to so easily extract interest income from the general public via government tax revenue.