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 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 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 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 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
February 25, 2020 Exploring new ways to pay Speech summary Timothy Lane CFA Montreal FinTech RDV 2020 Montréal, Quebec Deputy Governor Timothy Lane explains how the Bank of Canada is preparing for a future where Canadians may need a digital currency issued by their central bank. Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Cryptoassets, Cryptocurrencies, Digital currencies and fintech
February 25, 2020 Contingency planning for a central bank digital currency This background note explains the Bank’s official position on CBDC. It outlines the public policy, design, technology and risk management issues the Bank is considering as it builds its capacity to issue a CBDC in case it is needed in the future. Content Type(s): Background materials Topic(s): Digital currencies and fintech
February 25, 2020 Money and Payments in the Digital Age Remarks Timothy Lane CFA Montréal FinTech RDV2020 Montréal, Quebec Deputy Governor Timothy Lane explains how the Bank of Canada is preparing for a future where Canadians may need a digital currency issued by their central bank. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Cryptoassets, Cryptocurrencies, Digital currencies and fintech
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 Topic(s): Central bank research, Digital currencies and fintech JEL Code(s): E, E4, E42, E5, E51, O, O3, O31