Payment clearing and settlement systems

• September 12, 2025

  The evolution of how we pay for things

  

  New technologies new payments possibilities. Learn more about how these innovations can make purchases easier, but also introduce new risks.

  Content Type(s): Publications, The Economy, Plain and Simple Research Topic(s): Cyber security, Digital currencies and fintech, Digitalization, Financial services, Payment clearing and settlement systems, Retail payments supervision

• On the Programmability and Uniformity of Digital Currencies

  Staff Working Paper 2025-18 Jonathan Chiu, Cyril Monnet

  Central bankers argue that programmable digital currencies may compromise the uniformity of money. We develop a stylized model to examine this argument and the trade-offs involved in circulating programmable money.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Digital currencies and fintech, Payment clearing and settlement systems JEL Code(s): E, E5, E50, E58

• Stress testing central counterparties for resolution planning

  Staff Analytical Note 2025-11 Katherine Brennan, Bo Young Chang, Alper Odabasioglu, Radoslav Raykov

  The Bank of Canada completed its first resolution plan for the Canadian Derivatives and Clearing Corporation (CDCC) in 2024. To estimate the resolution costs, we apply the extreme value theory method to simulate the credit losses that would result from extreme scenarios where multiple clearing members default at the same time.

  Content Type(s): Staff research, Staff analytical notes Research Topic(s): Financial institutions, Financial markets, Financial stability, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): G, G1, G17, G2, G23, G28

• Privacy-Enhancing Technologies for CBDC Solutions

  Staff Discussion Paper 2025-1 Rakesh Arora, Han Du, Raza Ali Kazmi, Duc-Phong Le

  Privacy-enhancing technologies (PETs) could offer solutions to safeguard end-user privacy and meet rigorous data protection standards for central bank digital currencies. We consider how PETs can transform privacy design in financial systems and the implications of their broader adoption.

  Content Type(s): Staff research, Staff discussion papers Research Topic(s): Central bank research, Digital currencies and fintech, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, E42, O, O3, O31