The Economist discusses the risk of CBDC-induced bank disintermediation. Their summary of the 2019 paper by Markus Brunnermeier and myself: If people prefer CBDCS, however, the central bank could in effect pass their funds on to banks by lending to them at its policy interest rate. “The issuance of CBDC would simply render the central bank’s implicit lender-of-last-resort guarantee explicit,” wrote Markus Brunnermeier of Princeton University and Dirk Niepelt of Study Centre Gerzensee in a paper in 2019. Explicit and, perhaps, in constant use.
Topics:
Dirk Niepelt considers the following as important: Central Bank, Central bank digital currency, Contributions, Intermediation, Pass through, Research
This could be interesting, too:
Dirk Niepelt writes “Augenwischerei um SNB-Ausschüttungen (Misconceptions about SNB Distributions),” NZZ, 2024
Dirk Niepelt writes Bank of England CBDC Academic Advisory Group
Dirk Niepelt writes Panel on “Will the digital euro take off?,” CEPR, 2023
Dirk Niepelt writes Conference on “The Macroeconomic Implications of Central Bank Digital Currencies,” CEPR/ECB, 2023
The Economist discusses the risk of CBDC-induced bank disintermediation. Their summary of the 2019 paper by Markus Brunnermeier and myself:
If people prefer CBDCS, however, the central bank could in effect pass their funds on to banks by lending to them at its policy interest rate. “The issuance of CBDC would simply render the central bank’s implicit lender-of-last-resort guarantee explicit,” wrote Markus Brunnermeier of Princeton University and Dirk Niepelt of Study Centre Gerzensee in a paper in 2019. Explicit and, perhaps, in constant use.