Bitcoin Adoption and Beliefs in Canada
Using an economic model as well as survey data from the Bank of Canada, we study what factors influence the adoption of Bitcoin in Canada.
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114
result(s)
The Positive Case for a CBDC
Staff discussion paper 2021-11
Andrew Usher,
Edona Reshidi,
Francisco Rivadeneyra,
Scott Hendry
We discuss the competition and innovation arguments for issuing a central bank digital currency (CBDC). A CBDC could be an effective competition policy tool for payments. A CBDC could also support the vibrancy of the digital economy. It could help solve market failures and foster competition and innovation in new digital payments markets.
Content Type(s):
Staff research,
Staff discussion papers
JEL Code(s):
E,
E4,
E42,
E5,
E58,
L,
L4,
L5
Research Theme(s):
Financial system,
Financial stability and systemic risk,
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures,
Retail payments
Consumer Cash Withdrawal Behaviour: Branch Networks and Online Financial Innovation
Staff working paper 2021-28
Heng Chen,
Matthew Strathearn,
Marcel Voia
The physical network of bank branches is important in how consumers manage their cash holdings. This paper estimates how consumer withdrawal behaviour responds to the distance they must travel to their branch.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
G,
G2,
G21,
R,
R2,
R22
Research Theme(s):
Money and payments,
Cash and bank notes,
Digital assets and fintech
An Exploration of First Nations Reserves and Access to Cash
Staff discussion paper 2021-8
Heng Chen,
Walter Engert,
Kim Huynh,
Daneal O’Habib
Adequate cash distribution is one the Bank of Canada’s core interests. Canadians’ ability to access cash influences the Bank’s thinking on issuing a central bank digital currency. We provide a perspective on these issues by exploring access of First Nations reserves to cash.
Content Type(s):
Staff research,
Staff discussion papers
JEL Code(s):
E,
E4,
E41,
E42,
E5,
G,
G2,
G21
Research Theme(s):
Money and payments,
Cash and bank notes,
Digital assets and fintech
Payments on Digital Platforms: Resiliency, Interoperability and Welfare
Staff working paper 2021-19
Jonathan Chiu,
Tsz-Nga Wong
This paper studies the business model choice between running a cash platform and a token platform, as well as its welfare and policy implications.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E4,
E5,
L,
L5
Research Theme(s):
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures,
Retail payments
Stablecoin Assessment Framework
Staff discussion paper 2021-6
Alejandro García,
Bena Lands,
Dennis Yanchus
We offer relevant authorities a three-step assessment framework they can use to understand, identify and quantify the risks associated with stablecoin and other cryptocurrency arrangements.
Content Type(s):
Staff research,
Staff discussion papers
JEL Code(s):
D,
D7,
D78,
D8,
D81,
G,
G0,
G01,
G1,
G18,
O,
O3,
O38
Research Theme(s):
Financial system,
Financial stability and systemic risk,
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures
Monetary Policy Pass-Through with Central Bank Digital Currency
Staff working paper 2021-10
Janet Hua Jiang,
Yu Zhu
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E5,
E50,
E52
Research Theme(s):
Monetary policy,
Monetary policy framework and transmission,
Money and payments,
Digital assets and fintech
Estimating Policy Functions in Payments Systems Using Reinforcement Learning
Staff working paper 2021-7
Pablo S. Castro,
Ajit Desai,
Han Du,
Rodney J. Garratt,
Francisco Rivadeneyra
We demonstrate the ability of reinforcement learning techniques to estimate the best-response functions of banks participating in high-value payments systems—a real-world strategic game of incomplete information.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
A,
A1,
A12,
C,
C7,
D,
D8,
D83,
E,
E4,
E42,
E5,
E58
Research Theme(s):
Models and tools,
Econometric, statistical and computational methods,
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures
Eggs in One Basket: Security and Convenience of Digital Currencies
Staff working paper 2021-6
Charles M. Kahn,
Francisco Rivadeneyra,
Tsz-Nga Wong
Digital currencies store balances in anonymous electronic addresses. This paper analyzes the trade-offs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58
Research Theme(s):
Financial system,
Financial stability and systemic risk,
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures
Safe Payments
Staff working paper 2020-53
Jonathan Chiu,
Mohammad Davoodalhosseini,
Janet Hua Jiang,
Yu Zhu
In a cashless economy, would the private sector invest in the optimal level of safety in a deposit-based payment system? In general, because of externalities, the answer is no. While the private sector could over- or under-invest in safety, the government can use taxes or subsidies to correct private incentives.
Content Type(s):
Staff research,
Staff working papers
JEL Code(s):
E,
E4,
E42,
E5,
E50,
G,
G2,
G21
Research Theme(s):
Money and payments,
Digital assets and fintech,
Payment and financial market infrastructures,
Retail payments