A recent report by the Philadelphia branch of the US Federal Reserve said that one of the possible consequences of the launch of the digital currency of the central bank (CBDC) is the deposit monopoly of the Central Bank.
According to the Fed, after the release of CBDC, the activities of private banks will be in jeopardy, as the Central Bank will begin to attract more deposits from the commercial sector, and eventually become a monopolist.
In addition to the interests of private banks, this situation will lead to a change in the maturity of obligations, since the Central Bank does not borrow money for the short term.period, unlike commercial institutions. This can destabilize the existing financial system.
The report also said that at presentcentral banks are not investment experts, relying on specialized private organizations to finance long-term projects. The launch of CBDC may affect this market, but only in the absence of a sufficient level of competition or panic among investors.
Deputy Head of the Foreign Exchange Division of the IMFTomaso Mancini-Griffoli also studied the prospects for the transition to digital currencies, and came to the conclusion that the best option would be a public-private partnership in the form of synthetic stablecoins.
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