There is absolutely no reason banks should be given the priviledge of being the only way to deposit money, while playing with those customers money and simultaneously having zero risk on that money.
These banks are getting 10 to 1 leverage, from me, captive customer. Break their monopoly. I want an account at the Fed, and I want zero banks to be able to take leverage with my money, unless and until these banks give me a worthwhile interest rates on deposits. Let them actually compete. Right now it's not a competition, there are too big to fail banks which actually hold deposits, and there are small banks which can fail arbitrarily and cannot possibly compete because they actually assume the risk themselves.
I want zero risk CBDC. At the Fed. With the Fed's current interest rates as they give to real banks.
All their privileges should be gone. They can stay as investment institutions and if you trust them as that you're free to put your money there.
They get all the priviledge with no responsibility. If they cover for them, this should be the end of banking. Nothing less. Digital coin with zero risk and connection to all standard paying systems. Same interest as banks. Demote banks to investment institutions and make their special priviledges obsolete. No bank except the Fed will be too big to fail then, when no one's forcing you to bank anywhere.