O3 - Technological Change; Research and Development; Intellectual Property Rights

• Designing a CBDC for universal access

  Staff analytical note 2020-10 John Miedema, Cyrus Minwalla, Martine Warren, Dinesh Shah

  If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E41, O, O3, O31 Research Theme(s): Money and payments, Cash and bank notes, Digital assets and fintech, Payment and financial market infrastructures, Retail payments

• Privacy in CBDC technology

  Staff analytical note 2020-9 Sriram Darbha, Rakesh Arora

  Privacy is a key aspect of a potential central bank digital currency system. We outline different technical choices to enact various privacy models while complying with the appropriate regulations. We develop a framework to evaluate privacy models and list key risks and trade-offs in privacy design.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E42, E5, E51, O, O3 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures

• Technology Approach for a CBDC

  Staff analytical note 2020-6 Dinesh Shah, Rakesh Arora, Han Du, Sriram Darbha, John Miedema, Cyrus Minwalla

  In this note, we highlight a range of technical options and considerations in designing a contingent system for a central bank digital currency (CBDC) in Canada and explore how these options achieve stated public policy goals.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E42, E5, E51, O, O3, O31 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Retail payments

• Technology Adoption in Input-Output Networks

  Staff working paper 2019-51 Xintong Han, Lei Xu

  We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs.

  Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C61, L, L2, L23, L8, L86, O, O1, O14, O3, O33 Research Theme(s): Models and tools, Economic models, Structural challenges, Digitalization and productivity

• The Cyber Incident Landscape

  Staff analytical note 2019-32 Nikil Chande, Dennis Yanchus

  The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G2, G28, M, M1, M15, O, O3, O33, O38 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk

• Changing Fortunes: Long-Termism—G-Zero, Artificial Intelligence and Debt

  Staff discussion paper 2019-12 Stephen S. Poloz

  This paper discusses three long-term forces that are acting on the global economy and their implications for companies and policy-makers.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E6, E63, F, F0, F02, F1, F15, F5, F53, F6, H, O, O1, O11, O3, O33 Research Theme(s): Financial system, Financial stability and systemic risk, Structural challenges, Demographics and labour supply, Digitalization and productivity, International trade, finance and competitiveness

• Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution

  Staff discussion paper 2019-11 Stephen S. Poloz

  This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.”

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, E, E3, O, O1, O11, O3, O33 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, Digitalization and productivity

• Blockchain Revolution Without the Blockchain

  Staff analytical note 2018-5 Hanna Halaburda

  The technology behind blockchain has attracted a lot of attention. However, this technology is for the most part not well understood. There is no consensus on what benefits it may bring or on how it may fail.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D8, G, G2, O, O3, O33 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Structural challenges, Digitalization and productivity

• Capital-Goods Imports and US Growth

  Staff working paper 2018-1 Michele Cavallo, Anthony Landry

  Capital-goods imports have become an increasing source of growth for the U.S. economy. To understand this phenomenon, we build a neoclassical growth model with international trade in capital goods in which agents face exogenous paths of total factor and investment-specific productivity measures.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, F, F2, F4, O, O3, O4 Research Theme(s): Models and tools, Economic models, Monetary policy, Real economy and forecasting, Structural challenges, Digitalization and productivity, International trade, finance and competitiveness

• Digitalization and Inflation: A Review of the Literature

  Staff analytical note 2017-20 Karyne B. Charbonneau, Alexa Evans, Subrata Sarker, Lena Suchanek

  In the past few years, many have postulated that the possible disinflationary effects of digitalization could explain the subdued inflation in advanced economies. In this note, we review the evidence found in the literature. We look at three main channels.

  Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D2, D22, E, E3, E31, L, L8, L81, O, O3, O33 Research Theme(s): Financial markets and funds management, Market structure, Monetary policy, Inflation dynamics and pressures, Structural challenges, Digitalization and productivity