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>But with crypto/blockchain showing up and things like interest bearing CBDCs emerging (BoE is running pilots) we are reaching an age where you don't need to pu
by boppo1 3y ago
>But with crypto/blockchain showing up and things like interest bearing CBDCs emerging (BoE is running pilots) we are reaching an age where you don't need to put your Deposit in a bank to beat inflation.
What will we need banks for at all? Why not just stick with the CB? Hell they could start offering mortgages & the other products banks do.
- gsatic 3y agoBanks have huge amount of institutional knowledge on lending. And that's what they need to do without playing games with depositor cash. They need to borrow from the central bank. Central Bank is much more sophisticated than the avg depositor in deciding which lender to hand off cash too. I think this is where we will end, up after a few more bank bailouts which are coming. Depositors will have accounts directly with Central Bank or just hold interest bearing CBDCs in their wallet.