> Why couldn't you just deposit it with the state's central bank, which is what commercial banks do? In the US, the answer is that the Fed says you can't. Ther

> Why couldn't you just deposit it with the state's central bank, which is what commercial banks do? In the US, the answer is that the Fed says you can't. There's some good discussion on a recent attempt/request to change this at [0] (Scott Sumner), [1] (John Cochrane), and [2] (Matt Levine). [0] https://www.econlib.org/why-does-the-fed-oppose-narrow-banking/ https://www.econlib.org/why-does-the-fed-oppose-narrow-banki... [1] https://johnhcochrane.blogspot.com/2019/03/fed-vs-narrow-banks.html https://johnhcochrane.blogspot.com/2019/03/fed-vs-narrow-ban... [2] https://www.bloomberg.com/opinion/articles/2019-03-08/the-fed-versus-the-narrow-bank https://www.bloomberg.com/opinion/articles/2019-03-08/the-fe...