CBDC will need to be part of the existing system in some way. Without deposits, the banking system and all the capital allocation that goes with it is gone.
Yes fintechs are piggy backing banking licences now, but I'm not sure if its good for banks to become "white label" utility like operators, while fintechs like a SQ capture most of the value by controlling the customer. All I am doing is pointing out risks to banking. Obviously the banks can fight back and build better offerings to try to counter fintech etc. CBA is trying to do this. Flipside is WBC which white labelled for APT.
