Predicting the Demand for Central Bank Digital Currency: A Structural Analysis with Survey Data
How much of a CBDC would Canadian households want to hold, and what design features of a CBDC would they care about?
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145
result(s)
Central Bank Digital Currency and Banking: Macroeconomic Benefits of a Cash-Like Design
Staff Working Paper 2021-63
Jonathan Chiu,
Mohammad Davoodalhosseini
Should a CBDC be more like cash or bank deposits? An interest-bearing, cash-like CBDC not only makes payments more efficient but also increases total demand. This has positive effects on other transactions, inducing more deposit taking and lending and, thus, bank intermediation.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Digital currencies and fintech,
Monetary policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E50,
E58
Revisiting the Monetary Sovereignty Rationale for CBDCs
Staff Discussion Paper 2021-17
Skylar Brooks
One argument for central bank digital currencies (CBDCs) is that without them, private and foreign digital monies could displace domestic currencies, threatening the central bank’s monetary policy and lender of last resort capabilities. I revisit this monetary sovereignty rationale and offer a wider view—one that considers a broader set of currency functions and captures important cross-country variation.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Debt management,
Digital currencies and fintech,
Exchange rate regimes,
Financial stability,
Monetary policy
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E52,
E58,
H,
H1,
H12,
H6,
H63
Bitcoin Adoption and Beliefs in Canada
Staff Working Paper 2021-60
Daniela Balutel,
Christopher Henry,
Jorge Vásquez,
Marcel Voia
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.
Content Type(s):
Staff research,
Staff working papers
Research Topic(s):
Digital currencies and fintech,
Econometric and statistical methods,
Economic models
JEL Code(s):
D,
D8,
D83,
O,
O3,
O33
Cash and COVID-19: The impact of the second wave in Canada
Staff Discussion Paper 2021-12
Heng Chen,
Walter Engert,
Marie-Hélène Felt,
Kim Huynh,
Gradon Nicholls,
Daneal O’Habib,
Julia Zhu
The COVID-19 pandemic significantly increased the demand for cash. Cash in circulation increased sharply from March through December 2020, particularly in the early months of this period. Although use of electronic methods of payment also increased significantly, cash use for payments remains high for low-value transactions and among certain demographic groups.
Content Type(s):
Staff research,
Staff discussion papers
Research Topic(s):
Bank notes,
Central bank research,
Coronavirus disease (COVID-19),
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C12,
C9,
E,
E4,
O,
O5,
O54
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
Research Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E4,
E42,
E5,
E58,
L,
L4,
L5
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
Research Topic(s):
Bank notes,
Digital currencies and fintech
JEL Code(s):
G,
G2,
G21,
R,
R2,
R22
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
Research 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
Research Topic(s):
Digital currencies and fintech,
Monetary policy,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E5,
L,
L5
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
Research Topic(s):
Digital currencies and fintech,
Financial institutions,
Financial markets,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
D,
D7,
D78,
D8,
D81,
G,
G0,
G01,
G1,
G18,
O,
O3,
O38