The Federal Reserve Bank of Philadelphia's research department has published a new working paper focused on central bank digital currencies, exploring the transformative implications for the make-up of the banking sector. As noted in the abstract of the paper – entitled "Central Bank Digital Currency: Central Banking for All?" – a central bank's digital currency could make such an institution more attractive to depositors due to the perceived stability. The idea of a CBDC introducing a degree of competition in the banking system has been raised in the past, including in a December note by the IMF. The ... (full story)