Matsuoka, Tarishi; Watanabe, Makoto - 2025
This paper examines the role of Central Bank Digital Currency (CBDC) in a monetary model in which fundamental …-based bank runs arise endogenously. We demonstrate that introducing a CBDC designed to replicate the properties of cash displaces … the CBDC is designed to resemble bank deposits, cash, CBDC, and deposits can coexist as media of exchange, and a high CBDC …