bank channels funds back to the banking sector via open market operations and the introduction of a CBDC is neutral …This paper studies a stylized economy in which the central bank can hold either treasuries or risky securities against … central bank digital currency (CBDC) deposits. The key mechanism driving the results is the reduction in bank deposits that …

Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility … at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money …, but at the cost of potentially disrupting bank lending. Our aim is to avoid this potential disruption. Building on the …

competition for bank deposits between Central Bank and Commercial banks which eventually lead banking system toward full reserve … dollarization. Meanwhile, the discussion around the introduction of central bank digital currencies (CBDC) as a possible response … has continued more intensively. Introduction of a digital currency issued by the central bank will lead to a direct …

potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending, and …We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their …