Browse all research or check out these related conferences.
Understanding the benefits and risks of digital currencies and electronic payments is important because new technologies and new players could affect the financial system. This in turn could influence how we work to fulfill our core functions. For this reason, we closely monitor fintech developments.
The Bank is conducting research related to a central bank digital currency (CBDC). This is part of its contingency planning to be ready to issue a CBDC in the future if the need were to arise.
Research by Bank staff is produced independently from the Bank’s Governing Council. It may therefore differ from official Bank views. The views expressed in research papers are solely those of the authors. No responsibility for them should be attributed to the Bank.
Latest research
Crowdfunding and Risk
Staff Working Paper 2023-28
David Cimon
Crowdfunding may enable unique products to reach the consumer market. I model a crowdfunding technology that publicly screens consumer demand early in the production process. In this model, entrepreneurs like crowdfunding for risky projects where demand is uncertain, but not for large, safe projects or for projects where production costs are uncertain.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial markets,
Financial services
JEL Code(s):
G,
G2,
G21,
G24,
G3,
G32
A central bank digital currency for offline payments
Staff Analytical Note 2023-2
Cyrus Minwalla,
John Miedema,
Sebastian Hernandez,
Alexandra Sutton-Lalani
Offline functionality is a key consideration for a potential CBDC. We describe the different types of offline functionality based on their duration outside of network connection—either intermittent (for short periods) or extended (for longer periods). We discuss the advantages and drawbacks of each and consider implications for end-user devices, system resilience and universal accessibility.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Central bank research,
Digital currencies and fintech
JEL Code(s):
E,
E4,
E42,
E5,
E51,
E58,
O,
O3,
O31
On the Fragility of DeFi Lending
Staff Working Paper 2023-14
Jonathan Chiu,
Emre Ozdenoren,
Kathy Yuan,
Shengxing Zhang
We develop a dynamic model to capture key features of decentralized finance lending. We identify a price-liquidity feedback: the market outcome in any given period depends on agents' expectations about lending activities in future periods, with higher future price expectations leading to more lending and higher prices in that period.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial stability
JEL Code(s):
G,
G0,
G01,
G1,
G10
Latest conferences
November 19, 2015
Bank of Canada Conference held on November 19 and 20, 2015.
Electronic Money and Payments
Content Type(s):
Conferences and workshops
Topic(s):
Digital currencies and fintech
October 26, 2015
Bank of Canada Conference held on October 26, 2015.
Payments System Modernization: Opportunities & Challenges
Content Type(s):
Conferences and workshops
Topic(s):
Digital currencies and fintech