Disintermediation caused by CBDC can be prevented – research
Central banks can use lender of last resort power and decrease CBDC remuneration
Central banks have the tools necessary to mitigate bank disintermediation caused by the issuance of a central bank digital currency (CBDC), according to new research.
In their paper, academics Jonas Gross and Jonathan Schiller develop a model to monitor how both an interest-bearing and non-interest-bearing CBDC would change the structure of the banking sector.
“CBDCs do not negatively impact the stability of the financial sector, even though it crowds out deposits,” the authors say.
Under the
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- Taking stock of Bernanke: the original sin of forecasting
- Fed policy-makers disagree over risks
- Central bank of the year: Central Bank of Brazil