48
result(s)
A Tale of Two Countries: Cash Demand in Canada and Sweden
Staff Discussion Paper 2019-7
Walter Engert,
Ben Fung,
Björn Segendorf
Cash use for payments has been steadily decreasing in many countries, including Canada and Sweden. This might suggest an evolution toward a cashless society. But in Canada, cash in circulation relative to GDP has been stable for decades and has even increased in recent years. By contrast, the cash-to-GDP ratio in Sweden has been falling steadily. What has caused this difference? Are there lessons to be learned from comparing the Canadian and Swedish experiences?
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5
Explaining Unusual Cash Patterns in 2018
Staff Analytical Note 2019-22
Walter Engert,
Ben Fung,
Jozsef Molnar,
Gradon Nicholls
There was an unusually large decline of bank notes in circulation in October 2018. Some have argued that this was due to the legalization of cannabis in Canada in mid-October.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E58
Privacy as a Public Good: A Case for Electronic Cash
Staff Working Paper 2019-24
Rod Garratt,
Maarten van Oordt
Cash gives users a high level of privacy when making payments, but the use of cash to make payments is declining. People increasingly use debit cards, credit cards or other methods to pay.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Bank notes,
Central bank research,
Digital Currencies and Fintech,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
G,
G2,
G28
Central Bank Digital Currency and Banking
Staff Working Paper 2019-20
Jonathan Chiu,
Mohammad Davoodalhosseini,
Janet Hua Jiang,
Yu Zhu
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.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Market structure and pricing,
Monetary Policy,
Monetary policy framework
JEL Code(s):
E,
E5,
E50,
E58
Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers
Staff Discussion Paper 2019-1
James Chapman,
Carolyn A. Wilkins
The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E51,
E58,
H,
H4,
P,
P4,
P43
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) there may exist multiple equilibria; (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.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Monetary Policy
JEL Code(s):
E,
E5,
E52
2017 Methods-of-Payment Survey Report
Staff Discussion Paper 2018-17
Christopher Henry,
Kim Huynh,
Angelika Welte
Cash use is declining while contactless and mobile payments are on the rise.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services
JEL Code(s):
D,
D8,
D83,
E,
E4,
E41
Should the Central Bank Issue E-money?
Staff Working Paper 2018-58
Charles M. Kahn,
Francisco Rivadeneyra,
Tsz-Nga Wong
Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank's existing liabilities like bank notes and reserves.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58
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.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5
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.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Economic models,
Financial markets,
Payment clearing and settlement systems
JEL Code(s):
G,
G2,
H,
H4,
P,
P4,
P43