Scott Hendry

Senior Special Director

Scott Hendry was appointed Senior Special Director, Financial Technology (FinTech) in the Funds Management and Banking Department (FBD) in June 2016. In this role, he oversees the Bank’s efforts to monitor and research developments and implications of new technologies affecting the financial sector. He previously held the role of Director of Research for FBD and, before that, for the Financial Markets Department (FMD). His personal research has focused on electronic money, price discovery in the Canadian government bond market, and central bank communication. He has a PhD in Economics from the University of Western Ontario.


Senior Special Director
Funds Management and Banking
Strategic Leadership

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


A Framework for Analyzing Monetary Policy in an Economy with E-money

Staff Working Paper 2019-1 Yu Zhu, Scott Hendry
This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) multiple equilibria may exist; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved.

Is a Cashless Society Problematic?

Staff Discussion Paper 2018-12 Walter Engert, Ben Fung, Scott Hendry
The use of bank notes in Canada for payments has declined consistently for some time, and similar trends are evident in other countries. This has led some observers to predict a cashless society in the future.

Swedish Riksbank Notes and Enskilda Bank Notes: Lessons for Digital Currencies

Staff Working Paper 2018-27 Ben Fung, Scott Hendry, Warren E. Weber
This paper examines the experience of Sweden with government notes and private bank notes to determine how well the Swedish experience corresponds to that of Canada and the United States. Sweden is important to study because it has had government notes in circulation for more than 350 years, and it had government notes before private bank notes.
May 25, 2017

Project Jasper: Are Distributed Wholesale Payment Systems Feasible Yet?

This report describes a joint endeavour between public and private sectors to explore a wholesale payment system based on distributed ledger technology (DLT). They find that a stand-alone DLT system is unlikely to be as beneficial as a centralized payment system in terms of core operating costs; however, it could increase financial system efficiency as a result of integration with the broader financial market infrastructure.

Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies

Staff Working Paper 2017-5 Ben Fung, Scott Hendry, Warren E. Weber
This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform.

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Refereed Journals

  • "Labour Markets, Liquidity, and Monetary Policy Regimes,"
    (with David Andolfatto, SFU, and Kevin Moran), Canadian Journal of Economics, Vol 37, p. 392-420, April 2004.
  • "Liquidity Effects and Market Frictions,"
    (with Guang-Jia Zhang) Journal of Macroeconomics, Spring 2001, 23 (2): 153-176.

Other Publications

  • "Inflation Expectations and Learning about Monetary Policy,"
    (with David Andolfatto, SFU, and Kevin Moran), DNB Staff Reports No. 121/2004.
  • "Inflation Persistence and Costly Market Share Adjustment: A Preliminary Analysis,"
    (with Robert Amano), Monetary Policy in a Changing Environment, BIS Papers No. 19, p. 134-146.
  • "Liquidity Effects and Market Frictions,"
    (with Guang-Jia Zhang), DNB Staff Reports No. 29/1998.


  • Ph.D., University of Western Ontario (1993)
  • M.A., University of Western Ontario (1988)
  • B.A. (Honours), Wilfrid Laurier University (1987)

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