Potential benefits and key risks of fiat-referenced cryptoassets Staff Analytical Note 2022-20 Hugh Ding, Natasha Khan, Bena Lands, Cameron MacDonald, Laura Zhao Cryptoassets that reference a national currency (commonly known as stablecoins) aim to peg their value to the reference currency and typically use a reserve of traditional financial assets to maintain the peg. The market value of these fiat-referenced cryptoassets has grown more than thirtyfold between early 2020 and mid-2022. We explore some of their potential benefits and key risks. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Digital currencies and fintech, Financial institutions, Financial markets, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, G, G2, G28, L, O, O3
December 19, 2022 Overnight Repo Operations: Terms and conditions Terms and Conditions Operation details Overnight Repo and Overnight Reverse Repo operations are offered to eligible participants at the Bank of Canada’s discretion to reinforce the target for the overnight rate.
December 19, 2022 Bank of Canada announces increases to the dealer and round limits for Overnight Repo operations Effective Monday, December 19, 2022, limits for Overnight Repo (OR) operations will increase to $1 billion for each eligible participant. Content Type(s): Press, Market notices Source(s): Overnight repo operations
The Relative Benefits and Risks of Stablecoins as a Means of Payment: A Case Study Perspective Staff Discussion Paper 2022-21 Annetta Ho, Sriram Darbha, Yuliya Gorelkina, Alejandro García Our paper contributes to the discussion about the utility of stablecoins for retail payments through an objective, evidence-based approach that compares stablecoins with traditional retail payment methods. The paper also provides insights that could be useful in the design of central bank digital currencies. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Digital currencies and fintech, Payment clearing and settlement systems JEL Code(s): D, D7, D78, O, O3, O38
December 16, 2022 Bank notes: Backgrounders and explainers Get quick access to background materials, explainers and The Economy, Plain and Simple articles about bank notes.
December 15, 2022 CARR’s CORRA-first initiatives for derivatives to begin on January 9 - update The Canadian Alternative Reference Rate working group (CARR) has been laying the groundwork to ensure a smooth transition of financial products referencing the Canadian Dollar Offered Rate (CDOR). Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
December 15, 2022 News Find news by keyword, author, content type, location, source, topic or publication date.
December 14, 2022 Anti-money laundering and anti-terrorist financing controls framework The Bank of Canada is committed to supporting a secure, stable and resilient financial system infrastructure. This includes applying a risk-based approach to detect and deter the use of the Bank’s services and delivery channels for illegal purposes.