Jonathan Chiu - Latest - Bank of Canada
https://www.bankofcanada.ca/rss-feeds/
Bank of Canada RSS Feedsen2024-03-28T15:06:14+00:00Decentralized finance: Innovations and challenges
https://www.bankofcanada.ca/2023/10/staff-analytical-note-2023-15/
Decentralized finance surged in popularity around 2020. We explore its value and limitations and highlight some potential regulatory concerns.2023-10-16T14:00:22+00:00enDecentralized finance: Innovations and challenges2023-10-16Understanding DeFi Through the Lens of a Production-Network Model
https://www.bankofcanada.ca/2023/08/staff-working-paper-2023-42/
We develop a production-network model to capture how decentralized finance (DeFi) has evolved across different sectors of financial services. The model allows us to measure the value added by different DeFi sectors and to study how the connections across the sectors influence token prices.2023-08-15T12:06:06+00:00enUnderstanding DeFi Through the Lens of a Production-Network Model2023-08-15Digital currencies and fintechPayment clearing and settlement systemsStaff Working Paper 2023-42https://www.bankofcanada.ca/wp-content/uploads/2023/08/swp2023-42.pdfUnderstanding DeFi Through the Lens of a Production-Network ModelJonathan ChiuThorsten KoepplHanna YuShengxing ZhangAugust 2023GG2On the Fragility of DeFi Lending
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-14/
We develop a dynamic model to capture key features of decentralized finance lending. We identify a price-liquidity feedback: the market outcome in any given period depends on agents' expectations about lending activities in future periods, with higher future price expectations leading to more lending and higher prices in that period.2023-02-22T12:31:21+00:00enOn the Fragility of DeFi Lending2023-02-22Digital currencies and fintechFinancial stabilityStaff Working Paper 2023-14https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-14.pdfOn the Fragility of DeFi LendingJonathan ChiuEmre OzdenorenKathy YuanShengxing ZhangFebruary 2023GG0G01G1G10Central Bank Digital Currencies and Banking: Literature Review and New Questions
https://www.bankofcanada.ca/2023/02/staff-discussion-paper-2023-4/
We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending and liquidity and maturity transformation. We also take a broader look at CBDCs and highlight two promising directions for future research.2023-02-10T07:41:01+00:00enCentral Bank Digital Currencies and Banking: Literature Review and New Questions2023-02-10Central bank researchDigital currencies and fintechFinancial institutionsFinancial stabilityStaff Discussion Paper 2023-4https://www.bankofcanada.ca/wp-content/uploads/2023/02/sdp2023-4.pdfCentral Bank Digital Currencies and Banking: Literature Review and New QuestionsJames ChapmanJonathan ChiuMohammad DavoodalhosseiniJanet Hua JiangFrancisco RivadeneyraYu ZhuFebruary 2023EE5E50E58GG0G00LL0L00Grasping De(centralized) Fi(nance) Through the Lens of Economic Theory
https://www.bankofcanada.ca/2022/10/staff-working-paper-2022-43/
We analyze the value proposition and limitations of decentralized finance (DeFi). Based on a distributed ledger and smart contracts, DeFi can guarantee the execution of financial contracts, potentially lowering the costs of intermediation and improving financial inclusion.2022-10-11T11:25:52+00:00enGrasping De(centralized) Fi(nance) Through the Lens of Economic Theory2022-10-11Digital currencies and fintechPayment clearing and settlement systemsStaff Working Paper 2022-43https://www.bankofcanada.ca/wp-content/uploads/2022/10/swp2022-43.pdfStaff Working Paper 2022-43Jonathan ChiuCharles M. KahnThorsten KoepplOctober 2022GG2PayTech and the D(ata) N(etwork) A(ctivities) of BigTech Platforms
https://www.bankofcanada.ca/2022/08/staff-working-paper-2022-35/
Why do BigTech platforms introduce payment services? We explore this using a model in which a monopoly platform faces a trade-off between the costs associated with privacy concerns and the revenue from data services. We then analyze the feedback effects between data and payments.2022-08-04T07:27:04+00:00enPayTech and the D(ata) N(etwork) A(ctivities) of BigTech Platforms2022-08-04Digital currencies and fintechPayment clearing and settlement systemsStaff Working Paper 2022-35https://www.bankofcanada.ca/wp-content/uploads/2022/08/swp2022-35.pdfPayTech and the D(ata) N(etwork) A(ctivities) of BigTech PlatformsJonathan ChiuThorsten KoepplAugust 2022DD8EE4E42LL1What Drives Bitcoin Fees? Using Segwit to Assess Bitcoin's Long-Run Sustainability
https://www.bankofcanada.ca/2022/01/staff-working-paper-2022-2/
We explore what drives transaction fees in the Bitcoin system and consider whether Bitcoin can remain tamper proof in the long run.2022-01-10T16:46:41+00:00enWhat Drives Bitcoin Fees? Using Segwit to Assess Bitcoin's Long-Run Sustainability2022-01-10Digital currencies and fintechPayment clearing and settlement systemsStaff Working Paper 2022-2https://www.bankofcanada.ca/wp-content/uploads/2022/01/swp2022-2.pdfStaff Working Paper 2022-2Colin BrownJonathan ChiuThorsten KoepplJanuary 2022EE4E42GG2Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design
https://www.bankofcanada.ca/2021/12/staff-working-paper-2021-63/
Should a CBDC be more like cash or bank deposits? An interest-bearing, cash-like CBDC not only makes payments more efficient but also increases total demand. This has positive effects on other transactions, inducing more deposit taking and lending and, thus, bank intermediation.2021-12-17T15:06:29+00:00enCentral Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design2021-12-17Digital currencies and fintechMonetary policyMonetary policy frameworkStaff Working Paper 2021-63https://www.bankofcanada.ca/wp-content/uploads/2021/12/swp2021-63.pdfStaff Working Paper 2021-63Jonathan ChiuMohammad DavoodalhosseiniDecember 2021EE5E50E58Payments on Digital Platforms: Resiliency, Interoperability and Welfare
https://www.bankofcanada.ca/2021/04/staff-working-paper-2021-19/
This paper studies the business model choice between running a cash platform and a token platform, as well as its welfare and policy implications.2021-04-22T09:39:10+00:00enPayments on Digital Platforms: Resiliency, Interoperability and Welfare2021-04-22Digital currencies and fintechMonetary policyPayment clearing and settlement systemsStaff Working Paper 2021-19https://www.bankofcanada.ca/wp-content/uploads/2021/04/swp2021-19.pdfStaff Working Paper 2021-19Jonathan ChiuTsz-Nga WongApril 2021EE4E5LL5Safe Payments
https://www.bankofcanada.ca/2020/12/staff-working-paper-2020-53/
In a cashless economy, would the private sector invest in the optimal level of safety in a deposit-based payment system? In general, because of externalities, the answer is no. While the private sector could over- or under-invest in safety, the government can use taxes or subsidies to correct private incentives.2020-12-11T07:54:12+00:00enSafe Payments2020-12-11Central bank researchDigital currencies and fintechFinancial institutionsPayment clearing and settlement systemsStaff Working Paper 2020-53https://www.bankofcanada.ca/wp-content/uploads/2020/12/swp2020-53.pdfSafe PaymentsJonathan ChiuMohammad DavoodalhosseiniJanet Hua JiangYu ZhuDecember 2020EE4E42E5E50GG2G21