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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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
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E4,
E42,
E5,
E58,
L,
L4,
L5
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
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial institutions,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5,
G,
G2,
G21
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
Topic(s):
Digital currencies and fintech,
Monetary policy,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E5,
L,
L5
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
Topic(s):
Digital currencies and fintech,
Monetary policy transmission
JEL Code(s):
E,
E5,
E50,
E52
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
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58
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
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial institutions,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E50,
G,
G2,
G21
Security and convenience of a central bank digital currency
Staff Analytical Note 2020-21
Charles M. Kahn,
Francisco Rivadeneyra
An anonymous token-based central bank digital currency (CBDC) would pose certain security risks to users. These risks arise from how balances are aggregated, from their transactional use and from the competition between suppliers of aggregation solutions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
G,
G2,
G21
2019 Cash Alternative Survey Results
Staff Discussion Paper 2020-8
Kim Huynh,
Gradon Nicholls,
Mitchell Nicholson
The role of cash in Canadians’ lives has been evolving, as innovations in digital payments have become more widely adopted over the past decade. We contribute to the Bank of Canada’s research on central bank digital currency by monitoring Canadians’ use of cash and their adoption of digital payment methods.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Central bank research,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O51
The potential effect of a central bank digital currency on deposit funding in Canada
Staff Analytical Note 2020-15
Alejandro García,
Bena Lands,
Xuezhi Liu,
Joshua Slive
A retail central bank digital currency denominated in Canadian dollars could, in theory, create competition for bank deposit funding.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E4,
E41,
E44,
E5,
G,
G1,
G10,
G17,
G2,
G21,
G3,
G32,
O