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61
result(s)
Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory
Staff Working Paper 2022-43
Jonathan Chiu,
Charles M. Kahn,
Thorsten Koeppl
We analyze the value proposition and limitations of decentralized finance (DeFi). Based on a distributed ledger and smart contracts, DeFi can guarantee the execution of financial contracts, potentially lowering the costs of intermediation and improving financial inclusion.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
G,
G2
Archetypes for a retail CBDC
Staff Analytical Note 2022-14
Sriram Darbha
A variety of technology designs could support retail central bank digital currency (CBDC) systems. We develop five archetypes of CBDC systems, outline their characteristics and discuss their trade-offs. This work serves as a framework to analyze and compare different designs, independent of vendor, platform and implementation.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3
Cash, COVID-19 and the Prospects for a Canadian Digital Dollar
Staff Discussion Paper 2022-17
Walter Engert,
Kim Huynh
We provide an analysis of cash trends in Canada before and during the COVID-19 pandemic. We also consider the potential two scenarios for issuance of a central bank digital currency in Canada: the emergence of a cashless society or the widespread use of an alternative digital currency in Canada. Finally, we discuss the Canadian experience in maintaining cash as an efficient and accessible method of payment and store of value.
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
Cash in the Pocket, Cash in the Cloud: Cash Holdings of Bitcoin Owners
Staff Working Paper 2022-26
Daniela Balutel,
Christopher Henry,
Kim Huynh,
Marcel Voia
We estimate the effect that owning Bitcoin has on the amount of cash held by Canadian consumers. Our results question the view that adopting certain new technologies, such as Bitcoin, leads to a decline in cash holdings.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
E,
E4,
O,
O3,
O33,
O5,
O51
Settlement Balances Deconstructed
Staff Discussion Paper 2022-13
Parnell Chu,
Grahame Johnson,
Scott Kinnear,
Karen McGuinness,
Matthew McNeely
Because of the COVID-19 pandemic, public interest in the Bank’s balance sheet and, more specifically, the size of settlement balances, has grown. This paper deconstructs the concept of settlement balances and provides some context on their history, current state and possible future evolution.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Coronavirus disease (COVID-19),
Financial markets,
Monetary policy implementation
JEL Code(s):
E,
E5,
E58,
E59,
E6,
G,
G0,
G01
Resilience of bank liquidity ratios in the presence of a central bank digital currency
Staff Analytical Note 2022-5
Alissa Gorelova,
Bena Lands,
Maria teNyenhuis
Could Canadian banks continue to meet their regulatory liquidity requirements after the introduction of a cash-like retail central bank digital currency (CBDC)? We conduct a hypothetical exercise to estimate how a CBDC could affect bank liquidity by increasing the run-off rates of transactional retail deposits under four increasingly severe scenarios.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech,
Econometric and statistical methods,
Financial institutions,
Financial stability
JEL Code(s):
C,
E,
E4,
G,
G2,
G21,
O,
O3,
O33
Bitcoin Awareness, Ownership and Use: 2016–20
Staff Discussion Paper 2022-10
Daniela Balutel,
Marie-Hélène Felt,
Gradon Nicholls,
Marcel Voia
In this paper, we examine trends in Canadian ownership of Bitcoin and other cryptocurrencies from 2016 to 2020 using data from surveys conducted by the Bank of Canada.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
E,
E4,
O,
O5,
O51
Best Before? Expiring Central Bank Digital Currency and Loss Recovery
Staff Working Paper 2021-67
Charles M. Kahn,
Maarten van Oordt,
Yu Zhu
We consider introducing an expiry date for offline digital currency balances. Consumers whose digital cash expired would automatically receive the funds back into their online account. This functionality could increase demand for digital cash, with the time to expiry playing a key role.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech
JEL Code(s):
E,
E4,
E41,
E42
Predicting the Demand for Central Bank Digital Currency: A Structural Analysis with Survey Data
Staff Working Paper 2021-65
Jiaqi Li
How much of a CBDC would Canadian households want to hold, and what design features of a CBDC would they care about?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E5,
E50,
E58