Adoption of a New Payment Method: Theory and Experimental Evidence Staff Working Paper 2017-28 Jasmina Arifovic, John Duffy, Janet Hua Jiang We model the introduction of a new payment method, e.g., e-money, that competes with an existing payment method, e.g., cash. The new payment method involves relatively lower per-transaction costs for both buyers and sellers, but sellers must pay a fixed fee to accept the new payment method. Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Digital currencies and fintech JEL Code(s): C, C3, C35, C8, C83, C9, C92, E, E4, E41
June 27, 2017 FSB issues a report on the financial stability implications from FinTech This FSB press release announces that a working group chaired by Bank of Canada Senior Deputy Governor Carolyn A. Wilkins published a report analyzing the potential financial stability implications of fintech. Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech
May 25, 2017 Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet? Financial System Review - June 2017 James Chapman, Rodney J. Garratt, Scott Hendry, Andrew McCormack, Wade McMahon This report describes a joint endeavour between public and private sectors to explore a wholesale payment system based on distributed ledger technology (DLT). They find that a stand-alone DLT system is unlikely to be as beneficial as a centralized payment system in terms of core operating costs; however, it could increase financial system efficiency as a result of integration with the broader financial market infrastructure. Content Type(s): Publications, Financial System Review articles Topic(s): Digital currencies and fintech, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E58, G, G2, G28
The Bank of Canada 2015 Retailer Survey on the Cost of Payment Methods: Calibration for Single-Location Retailers Technical Report No. 109 Heng Chen, Rallye Shen Calibrated weights are created to (a) reduce the nonresponse bias; (b) reduce the coverage error; and (c) make the weighted estimates from the sample consistent with the target population in terms of certain key variables. Content Type(s): Staff research, Technical reports Topic(s): Digital currencies and fintech, Econometric and statistical methods JEL Code(s): C, C8, C81, C83
The Costs of Point-of-Sale Payments in Canada Staff Discussion Paper 2017-4 Anneke Kosse, Heng Chen, Marie-Hélène Felt, Valéry Dongmo Jiongo, Kerry Nield, Angelika Welte Using data from our 2014 cost-of-payments survey, we calculate resource costs for cash, debit cards and credit cards. For each payment method, we examine the total cost incurred by consumers, retailers, financial institutions and infrastructures, the Royal Canadian Mint and the Bank of Canada. Content Type(s): Staff research, Staff discussion papers Topic(s): Bank notes, Digital currencies and fintech, Financial institutions, Payment clearing and settlement systems JEL Code(s): D, D1, D12, D2, D23, D24, E, E4, E41, E42, G, G2, G21, L, L2
March 15, 2017 IMF Managing Director Welcomes Establishment of High Level Advisory Group on FinTech This press release, issued by the International Monetary Fund, announces the creation of the High Level Advisory Group on FinTech. Bank of Canada Senior Deputy Governor Carolyn A. Wilkins is among the members of the new advisory group. Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech
February 21, 2017 The Potential for FinTech to Transform the Financial System in Canada Remarks Carolyn A. Wilkins Ottawa, Ontario Comments to the Competition Bureau of Canada. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Digital currencies and fintech
Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies Staff Working Paper 2017-5 Ben Fung, Scott Hendry, Warren E. Weber This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform. Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Digital currencies and fintech, Financial services JEL Code(s): E, E4, E41, E42, E5, E58
December 12, 2016 FSB Regional Consultative Group for the Americas discusses fintech, correspondent banking and regional vulnerabilities This press release, issued by the Financial Stability Board, announces that a regional consultative group co-chaired by Bank of Canada Senior Deputy Governor Carolyn A. Wilkins discussed the benefits and risks of fintech developments, including the implications of distributed ledger technology and peer-to-peer lending. Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech