45
result(s)
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
Central Bank Digital Currency and Monetary Policy
Staff Working Paper 2018-36
Mohammad Davoodalhosseini
Many central banks are contemplating whether to issue central bank digital currency. This piece explores the implications as well as potential motivators of such a step.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Monetary Policy
JEL Code(s):
E,
E4,
E42,
E5,
E50
Incentive Compatibility on the Blockchain
Staff Working Paper 2018-34
Jonathan Chiu,
Thorsten Koeppl
A blockchain is a digital ledger that keeps track of a record of ownership without the need for a designated party to update and enforce changes to the record. The updating of the ledger is done directly by the users of the blockchain and is traditionally governed by a proof-of-work (PoW) protocol.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Digital Currencies and Fintech,
Economic models,
Payment clearing and settlement systems
JEL Code(s):
G,
G2,
H,
H4,
P,
P4,
P43
A Look Inside the Box: Combining Aggregate and Marginal Distributions to Identify Joint Distributions
Staff Working Paper 2018-29
Marie-Hélène Felt
This paper proposes a method for estimating the joint distribution of two or more variables when only their marginal distributions and the distribution of their aggregates are observed. Nonparametric identification is achieved by modelling dependence using a latent common-factor structure.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Econometric and statistical methods
JEL Code(s):
C,
C1,
C14,
D,
D1,
D14,
E,
E4,
E41