Browse all research or check out these related conferences.
Understanding the benefits and risks of digital currencies and electronic payments is important because new technologies and new players could affect the financial system. This in turn could influence how we work to fulfill our core functions. For this reason, we closely monitor fintech developments.
The Bank is conducting research related to a central bank digital currency (CBDC). This is part of its contingency planning to be ready to issue a CBDC in the future if the need were to arise.
Research by Bank staff is produced independently from the Bank’s Governing Council. It may therefore differ from official Bank views. The views expressed in research papers are solely those of the authors. No responsibility for them should be attributed to the Bank.
Latest research
Finding a Needle in a Haystack: A Machine Learning Framework for Anomaly Detection in Payment Systems
Staff Working Paper 2024-15
Ajit Desai,
Anneke Kosse,
Jacob Sharples
Our layered machine learning framework can enhance real-time transaction monitoring in high-value payment systems, which are a central piece of a country’s financial infrastructure. When tested on data from Canadian payment systems, it demonstrated potential for accurately identifying anomalous transactions. This framework could help improve cyber and operational resilience of payment systems.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial services,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C4,
C45,
C5,
C55,
D,
D8,
D83,
E,
E4,
E42
COVID-19 Hasn’t Killed Merchant Acceptance of Cash: Results from the 2023 Merchant Acceptance Survey
Staff Discussion Paper 2024-2
Angelika Welte,
Katrina Talavera,
Liang Wang,
Joy Wu
The Bank of Canada’s Merchant Acceptance Survey finds that 96% of small and medium-sized businesses in Canada accepted cash in 2023. Acceptance of debit and credit cards has increased to 89%, and acceptance of digital payments has also increased. However, Canada is far from being a cashless society.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C8,
D,
D2,
D22,
E,
E4,
L,
L2
CBDC: Banking and Anonymity
Staff Working Paper 2024-9
Yuteng Cheng,
Ryuichiro Izumi
We examine the optimal amount of user anonymity in a central bank digital currency in the context of bank lending. Anonymity, defined as the lender’s inability to discern an entrepreneur’s actions that enable fund diversion, influences the choice of payment instrument due to its impact on a bank’s lending decisions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E58,
G,
G2,
G28
Latest conferences
November 19, 2015
Bank of Canada Conference held on November 19 and 20, 2015.
Electronic Money and Payments
Content Type(s):
Conferences and workshops
Topic(s):
Digital currencies and fintech
October 26, 2015
Bank of Canada Conference held on October 26, 2015.
Payments System Modernization: Opportunities & Challenges
Content Type(s):
Conferences and workshops
Topic(s):
Digital currencies and fintech