Fraschini, Martina; Somoza, Luciano; Terracciano, Tammaro - 2021
central bank digital currency (CBDC) deposits. The key mechanism driving the results is the reduction in bank deposits that … follows the introduction of a CBDC and its impact on the banking sector. With CBDC funds invested in treasuries, the central … bank channels funds back to the banking sector via open market operations and the introduction of a CBDC is neutral …