Jonathan Chiu

Senior Research Advisor

Jonathan Chiu is a Senior Research Advisor in the Funds Management and Banking Department (FBD). His main research interests concern monetary theory, banking, payments and financial infrastructures. He also teaches monetary theory at Queen’s University. Jonathan received his PhD in economics from the University of Western Ontario.

Contact

Senior Research Advisor
Funds Management and Banking
Research

Bank of Canada
234 Wellington Street
Ottawa, ON, K1A 0G9

Latest

Central Bank Digital Currency and Banking

Many central banks are considering whether to issue a new form of electronic money that would be accessible to the public. This new form is usually called a central bank digital currency (CBDC). Issuing a CBDC would have implications on the financial system and more broadly on the wider economy.

Blockchain-Based Settlement for Asset Trading

Staff Working Paper 2018-45 Jonathan Chiu, Thorsten Koeppl
Can securities be settled on a blockchain and, if so, what are the gains relative to existing settlement systems? We consider a blockchain that ensures delivery versus payment by linking transfers of assets with payments and operates using a proof-of-work protocol. The main benefit of a blockchain is faster and more flexible settlement, whereas the challenge is to avoid settlement fails when participants fork the chain to get rid of trading losses.

Incentive Compatibility on the Blockchain

Staff Working Paper 2018-34 Jonathan Chiu, Thorsten Koeppl
A blockchain is a digital ledger that keeps track of a record of ownership without the need for a designated party to update and enforce changes to the record. The updating of the ledger is done directly by the users of the blockchain and is traditionally governed by a proof-of-work (PoW) protocol.

Relationships in the Interbank Market

Staff Working Paper 2016-33 Jonathan Chiu, Cyril Monnet
The market for central bank reserves is mainly over-the-counter and exhibits a core-periphery network structure. This paper develops a model of relationship lending in the unsecured interbank market. In equilibrium, a tiered lending network arises endogenously as banks choose to build relationships to insure against liquidity shocks and to economize on the cost to trade in the interbank market.

On the Essentiality of E-Money

Staff Working Paper 2015-43 Jonathan Chiu, Tsz-Nga Wong
Recent years have witnessed the advances of e-money systems such as Bitcoin, PayPal and various forms of stored-value cards. This paper adopts a mechanism design approach to identify some essential features of different payment systems that implement and improve the constrained optimal resource allocation.

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Other

Journal Articles

Other Research

  • “The Economics of Cryptocurrencies – Bitcoin and Beyond”
    (with Thorsten Koeppl).
  • “Relationships in the Interbank Market”
     (with Cyril Monnet).
  • “Short-run Dynamics in a Search-Theoretic Model of Monetary Exchange”
    (with Miguel Molico).

Education

  • Ph.D. in Economics, University of Western Ontario, 2005

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