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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70
result(s)
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
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
C,
C9,
E,
E4,
E5,
E58
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
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31
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
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E41,
O,
O3,
O31
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
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3
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
Research 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
Research Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
C,
C5,
C51,
E,
E4,
E42,
L,
L1,
L14,
L5,
L52
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
Research Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
O,
O3,
O31
CBDC and Monetary Sovereignty
Staff Analytical Note 2020-5
Antonio Diez de los Rios,
Yu Zhu
In an increasingly digitalized world, issuers of private digital currency can weaken central banks’ ability to stabilize the economy. By continuing to make central bank money attractive as a payment instrument in a digital world, a central bank digital currency (CDBC) could help to maintain a country’s monetary sovereignty.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Digital currencies and fintech,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E58,
F,
F5,
F55,
G,
G1,
G15
CBDC and Monetary Policy
Staff Analytical Note 2020-4
Mohammad Davoodalhosseini,
Francisco Rivadeneyra,
Yu Zhu
Improving the conduct of monetary policy is unlikely to be the main motivation for central banks to issue a central bank digital currency (CBDC). While some argue that a CBDC could allow more complex transfer schemes or the ability to break below the zero lower bound, we find these benefits might be small or difficult to realize in practice.
Content Type(s):
Staff research,
Staff analytical notes
Research Topic(s):
Digital currencies and fintech,
Monetary policy,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E5,
E51,
E52