THE MACROECONOMIC IMPLICATIONS OF CENTRAL BANK DIGITAL CURRENCIES (CBDCs) ON TRADITIONAL BANKING SYSTEMS

This research paper explores the macroeconomic implications of Central Bank Digital Currencies (CBDCs) on traditional banking systems. As central banks worldwide advance toward the implementation of CBDCs, these digital currencies are poised to fundamentally alter the financial landscape. This study examines the potential effects of CBDCs on commercial banks, particularly regarding deposit disintermediation, changes in revenue models, and the adaptation strategies banks may need to adopt. Additionally, the paper analyzes how CBDCs could influence monetary policy transmission, financial stability, and consumer behavior, including impacts on financial inclusion.