The Philadelphia branch of the United States Federal Reserve has published a new report that warns about the potential effects of issuing central bank digital currencies (CBDCs).
This monopolization could endanger maturity transformation, according to the Fed, which is the practice of financial institutions borrowing money on shorter time frames than they lend it out.
The Federal Reserve also states that if competition from commercial banks is impaired, the central bank needs to take extra care to avoid disrupting maturity transformation
Continue read: https://cointelegraph.com/news/central-bank-digital-currencies-endanger-private-banks-says-federal-reserve
