The Federal Reserve Bank of Philadelphia has published a paper about Central Bank Digital Currency (CBDC). It highlights the role of commercial banks in taking short term deposits but lending longer term, or maturity transformation. If there’s a retail CBDC, then commercial deposits might migrate to the central bank.
It considers a CBDC to be the equivalent of the demand deposits at a commercial bank, but with government backing.
The paper argues that “maturity transformation is a first-order consideration that has not been thoroughly examined by the literature, often more interested in questions such as the consequences of a CBDC for interest rates, tax evasion, or anonymity.”
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