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78
result(s)
Cash and COVID-19: The Effects of Lifting Containment Measures on Cash Demand and Use
Staff Discussion Paper 2021-3
Heng Chen,
Walter Engert,
Kim Huynh,
Gradon Nicholls,
Julia Zhu
Using Bank Note Distribution System data on the demand for cash up to September 2020, we find that demand was strong. This is true even though cash use for payments declined early in the pandemic. When mobility restrictions and lockdown measures were eased, cash use for payments increased sharply but remained less popular than electronic methods of payment.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Central bank research,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O54
Distributional Effects of Payment Card Pricing and Merchant Cost Pass-through in Canada and the United States
Staff Working Paper 2021-8
Marie-Hélène Felt,
Fumiko Hayashi,
Joanna Stavins,
Angelika Welte
Although credit cards are more expensive for merchants to accept than cash or debit cards, merchants typically pass through their costs evenly to all customers. Along with consumer card rewards and banking fees, this creates cross-subsidies between payment methods. Because higher-income individuals tend to use credit cards more than those with lower incomes, our results indicate that these cross-subsidies might lead to regressive distributional effects.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Financial institutions,
Financial services,
Market structure and pricing,
Payment clearing and settlement systems
JEL Code(s):
D,
D1,
D12,
D2,
D23,
D3,
D31,
E,
E4,
E42,
G,
G2,
G21,
L,
L8,
L81
Losing Contact: The Impact of Contactless Payments on Cash Usage
Staff Working Paper 2020-56
Marie-Hélène Felt
Contactless payment cards are a competitive alternative to cash. Using Canadian panel data from 2010 to 2017, this study investigates whether contactless credit cards are an important contributor to the decline in the transactional use of cash.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C3,
C33,
D,
D1,
D12,
E,
E4,
E41
2019 Cash Alternative Survey Results
Staff Discussion Paper 2020-8
Kim Huynh,
Gradon Nicholls,
Mitchell Nicholson
The role of cash in Canadians’ lives has been evolving, as innovations in digital payments have become more widely adopted over the past decade. We contribute to the Bank of Canada’s research on central bank digital currency by monitoring Canadians’ use of cash and their adoption of digital payment methods.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Central bank research,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O51
Survival Analysis of Bank Note Circulation: Fitness, Network Structure and Machine Learning
Staff Working Paper 2020-33
Diego Rojas,
Juan Estrada,
Kim Huynh,
David T. Jacho-Chávez
Using the Bank of Canada's Currency Information Management Strategy, we analyze the network structure traced by a bank note’s travel in circulation and find that the denomination of the bank note is important in our potential understanding of the demand and use of cash.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Econometric and statistical methods,
Payment clearing and settlement systems
JEL Code(s):
C,
C5,
C52,
C6,
C65,
C8,
C81,
E,
E4,
E42,
E5,
E51
Cash and COVID-19: The impact of the pandemic on demand for and use of cash
Staff Discussion Paper 2020-6
Heng Chen,
Walter Engert,
Kim Huynh,
Gradon Nicholls,
Mitchell Nicholson,
Julia Zhu
Consumer spending declined significantly during the recent COVID-19 pandemic. This negative shock likely reduced spending across all methods of payment (cash, debit, credit, etc.). The mix of payment methods consumers use could also be affected. We study how the pandemic has influenced the demand for and use of cash. We also offer insights into the use of other payment methods, such as debit and credit cards.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Central bank research,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O54
Is Central Bank Currency Fundamental to the Monetary System?
Staff Discussion Paper 2020-2
Hanna Armelius,
Carl Andreas Claussen,
Scott Hendry
In this paper, we discuss whether the ability of individuals to convert commercial bank money (i.e., bank deposits) into central bank money is fundamentally important for the monetary system.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5
Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency
Staff Working Paper 2020-7
Kim Huynh,
Jozsef Molnar,
Oleksandr Shcherbakov,
Qinghui Yu
Using a two-stage model, we study the determinants of Canadian consumers’ choices of payment method at the point of sale. We estimate consumer preferences and adoption costs for various combinations of payment methods. We analyze how introducing a central bank digital currency would affect the market equilibrium.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
C,
C5,
C51,
E,
E4,
E42,
L,
L1,
L14,
L5,
L52
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
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5