E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

• The Impact of Potential Retail Central Bank Digital Currency on the Canadian Financial System During a Severe Recession

  Staff analytical paper 2026-30 Sofia Priazhkina

  This policy note examines how a non-interest-bearing retail central bank digital currency (CBDC) could affect the financial stability of Canada’s systemically important banks during a severe recession. Stress test results show that the banks remain resilient, maintaining key regulatory ratios even under high CBDC demand.

  Content Type(s): Staff research, Staff analytical paper JEL Code(s): E, E4, E44, E5, E58, E6, E61, G, G0, G01, G2, G21, G28 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Money and payments, Digital assets and fintech, Structural challenges, Digitalization and productivity