Digital currencies and fintech

• Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers

  Staff Discussion Paper 2019-1 James Chapman, Carolyn A. Wilkins

  The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries.

  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, E51, E58, H, H4, P, P4, P43

• A Framework for Analyzing Monetary Policy in an Economy with E-money

  Staff Working Paper 2019-1 Yu Zhu, Scott Hendry

  This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) multiple equilibria may exist; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved.

  Content Type(s): Staff research, Staff working papers Topic(s): Digital currencies and fintech, Monetary policy JEL Code(s): E, E5, E52

• 2017 Methods-of-Payment Survey Report

  Staff Discussion Paper 2018-17 Christopher Henry, Kim Huynh, Angelika Welte

  Cash use is declining while contactless and mobile payments are on the rise.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Bank notes, Digital currencies and fintech, Financial services JEL Code(s): D, D8, D83, E, E4, E41

• Should the Central Bank Issue E-money?

  Staff Working Paper 2018-58 Charles M. Kahn, Francisco Rivadeneyra, Tsz-Nga Wong

  Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves.

  Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Digital currencies and fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E42, E5, E51, E58
• November 15, 2018

  The Bank of Canada, Bank of England and Monetary Authority of Singapore share assessment on emerging opportunities for digital transformation in cross-border payments

  This joint press release describes a preliminary report on the findings of the fourth phase of the Project Jasper research initiative.

  Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech
• October 25, 2018

  Money for Nothing? A Central Banker’s Take on Cryptoassets

  Presentation Carolyn A. Wilkins Princeton University Princeton, New Jersey

  Senior Deputy Governor Carolyn A. Wilkins discusses cryptoassets and the key questions they pose for central banks.

  Content Type(s): Press, Speeches and appearances, Presentations Topic(s): Digital currencies and fintech
• October 22, 2018

  Payments Canada, the Bank of Canada, TMX Group, Accenture and R3 publish report about the feasibility of equity settlement through Distributed Ledger Technology

  This joint press release describes a new report on the findings of the third phase of the Project Jasper research initiative.

  Content Type(s): Press, Press releases Topic(s): Digital currencies and fintech
• October 16, 2018

  Navigating digital disruption and the economy

  

  Eric Santor

  Technology can enhance efficiency and help create new jobs, but challenges like automation's impact on employment also need careful consideration and proactive solutions.

  Content Type(s): Publications, The Economy, Plain and Simple Topic(s): Central bank research, Digital currencies and fintech, Digitalization, Economic models, Labour markets, Market structure and pricing, Productivity, Recent economic and financial developments, Service sector

• Is a Cashless Society Problematic?

  Staff Discussion Paper 2018-12 Walter Engert, Ben Fung, Scott Hendry

  The use of bank notes in Canada for payments has declined consistently for some time, and similar trends are evident in other countries. This has led some observers to predict a cashless society in the future.

  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
• October 1, 2018

  Decrypting “Crypto”

  Remarks Timothy Lane Haskayne School of Business - University of Calgary Calgary, Alberta

  Deputy Governor Timothy Lane discusses the Bank of Canada’s research and responses to public interest in cryptocurrencies.

  Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Cryptoassets, Cryptocurrencies, Digital currencies and fintech, Financial stability