February 11, 2021 Canadian universities propose designs for a central bank digital currency The Bank of Canada is researching potential system designs and business models for a digital currency that, like a banknote, would be widely accessible, secure and denominated in Canadian dollars. Content Type(s): Press, Announcements Topic(s): Digital currencies and fintech
February 10, 2021 Changing how we pay Speech summary Timothy Lane Institute for Data Valorisation Montréal, Quebec Deputy Governor Timothy Lane discusses how the pandemic has accelerated the digitalization of the economy. Content Type(s): Press, Speeches and appearances, Speech summaries Topic(s): Bank notes, Coronavirus disease (COVID-19), Cryptocurrencies, Digital currencies and fintech, Payment clearing and settlement systems
February 10, 2021 Payments innovation beyond the pandemic Remarks (delivered virtually) Timothy Lane Institute for Data Valorisation Montréal, Quebec Deputy Governor Timothy Lane talks about how the Bank of Canada is contributing to the modernization of our payments ecosystem, and how the COVID-19 pandemic has highlighted the need to make payments more convenient for all Canadians. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Bank notes, Coronavirus disease (COVID-19), Cryptocurrencies, Digital currencies and fintech, Payment clearing and settlement systems
February 9, 2021 CARR welcomes issuance of first compounded in arrears CORRA floating rate note The Canadian Alternative Reference Rate working group (CARR) welcomes the Royal Bank of Canada’s issuance of the first floating rate note referencing CORRA compounded-in-arrears. Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group
February 8, 2021 Operational details for upcoming secondary market purchases of Government of Canada securities (February 15-26) As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
Distributional Effects of Payment Card Pricing and Merchant Cost Pass-through in Canada and the United States Staff Working Paper 2021-8 Marie-Hélène Felt, Fumiko Hayashi, Joanna Stavins, Angelika Welte Although credit cards are more expensive for merchants to accept than cash or debit cards, merchants typically pass through their costs evenly to all customers. Along with consumer card rewards and banking fees, this creates cross-subsidies between payment methods. Because higher-income individuals tend to use credit cards more than those with lower incomes, our results indicate that these cross-subsidies might lead to regressive distributional effects. Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Financial institutions, Financial services, Market structure and pricing, Payment clearing and settlement systems JEL Code(s): D, D1, D12, D2, D23, D3, D31, E, E4, E42, G, G2, G21, L, L8, L81