The potential effect of a central bank digital currency on deposit funding in Canada
A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding.
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262
result(s)
COVID-19 and bond market liquidity: alert, isolation and recovery
Staff analytical note 2020-14
Jean-Sébastien Fontaine,
Hayden Ford,
Adrian Walton
The disruption due to COVID-19 reverberated through the bond markets in three phases. In the first phase, dealers met the rising demand for liquidity. In the second, dealers reduced the supply of liquidity, and trading conditions worsened significantly. Finally, the market returned to relative stability following several interventions by the Bank of Canada.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4
Research Theme(s):
Financial markets and funds management,
Funds management,
Market functioning,
Financial system,
Financial stability and systemic risk
BoC-BoE Sovereign Default Database: What’s New in 2020?
Staff analytical note 2020-13
David Beers,
Elliot Jones,
John Walsh
The Boc–BoE database of sovereign debt defaults, published and updated annually by the Bank of Canada and the Bank of England, provides comprehensive estimates of stocks of government obligations in default. The 2020 edition includes a new section examining the scale of domestic arrears in 2018.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
F,
F3,
F34,
G,
G1,
G10,
G14,
G15
Research Theme(s):
Financial markets and funds management,
Funds management,
International markets and currencies,
Financial system,
Financial stability and systemic risk
CBDC adoption and usage: some insights from field and laboratory experiments
Staff analytical note 2020-12
Janet Hua Jiang
This note discusses insights from historical launches of new payment methods and related laboratory experiments on the potential adoption and use of a central bank digital currency in the Canadian context.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
C,
C9,
E,
E4,
E5,
E58
Research Theme(s):
Money and payments,
Digital assets and fintech,
Retail payments
Security of a CBDC
Staff analytical note 2020-11
Cyrus Minwalla
Security is an important element in ensuring public confidence in a central bank digital currency (CBDC). This note highlights the required security properties of a CBDC system and the challenges encountered with existing solutions, should the Bank of Canada choose to issue one.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31
Research Theme(s):
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures
Designing a CBDC for universal access
Staff analytical note 2020-10
John Miedema,
Cyrus Minwalla,
Martine Warren,
Dinesh Shah
If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E41,
O,
O3,
O31
Research Theme(s):
Money and payments,
Cash and bank notes,
Digital assets and fintech,
Payment and financial market infrastructures,
Retail payments
Privacy in CBDC technology
Staff analytical note 2020-9
Sriram Darbha,
Rakesh Arora
Privacy is a key aspect of a potential central bank digital currency system. We outline different technical choices to enact various privacy models while complying with the appropriate regulations. We develop a framework to evaluate privacy models and list key risks and trade-offs in privacy design.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3
Research Theme(s):
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures
Household indebtedness risks in the wake of COVID‑19
Staff analytical note 2020-8
Olga Bilyk,
Anson T. Y. Ho,
Mikael Khan,
Geneviève Vallée
COVID-19 presents challenges for indebted households. We assess these by drawing parallels between pandemics and natural disasters. Taking into account the financial health of the household sector when the pandemic began, we run model simulations to illustrate how payment deferrals and the labour market recovery will affect mortgage defaults.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
C,
C2,
C21,
D,
D1,
D12,
D14,
E,
E2,
E24,
E27,
E6,
E62,
G,
G2,
G21,
G28,
R,
R2
Research Theme(s):
Financial system,
Financial stability and systemic risk,
Household and business credit,
Monetary policy,
Real economy and forecasting
A Uniform Currency in a Cashless Economy
Staff analytical note 2020-7
Walter Engert,
Ben Fung
A number of questions can arise when considering the implications of a cashless society. This note considers whether cash is necessary for a uniform currency.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E41,
E42,
E5
Research Theme(s):
Money and payments,
Cash and bank notes,
Digital assets and fintech,
Payment and financial market infrastructures
Technology Approach for a CBDC
Staff analytical note 2020-6
Dinesh Shah,
Rakesh Arora,
Han Du,
Sriram Darbha,
John Miedema,
Cyrus Minwalla
In this note, we highlight a range of technical options and considerations in designing a contingent system for a central bank digital currency (CBDC) in Canada and explore how these options achieve stated public policy goals.
Content Type(s):
Staff research,
Staff analytical notes
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31
Research Theme(s):
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures,
Retail payments