Is Central Bank Currency Fundamental to the Monetary System? Staff Discussion Paper 2020-2 Hanna Armelius, Carl Andreas Claussen, Scott Hendry In this paper, we discuss whether the ability of individuals to convert commercial bank money (i.e., bank deposits) into central bank money is fundamentally important for the monetary system. 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
May 6, 2020 Understanding seigniorage At the Bank of Canada, we cover the cost of day-to-day business with “seigniorage,” which means earning money from issuing bank notes. Content Type(s): Explainers Topic(s): Bank notes