Money and payments

• The Bank of Canada 2015 Retailer Survey on the Cost of Payment Methods: Sampling

  Technical report No. 108 Angelika Welte

  In 2015, the Bank of Canada undertook the large-scale Retailer Survey on the Cost of Payment Methods.

  Content Type(s): Staff research, Technical reports JEL Code(s): C, C8, C81, C83 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Retail payments

• The Bank of Canada 2015 Retailer Survey on the Cost of Payment Methods: Nonresponse

  Technical report No. 107 Stan Hatko

  Nonresponse is a considerable challenge in the Retailer Survey on the Cost of Payment Methods conducted by the Bank of Canada in 2015. There are two types of nonresponse in this survey: unit nonresponse, in which a business does not reply to the entire survey, and item nonresponse, in which a business does not respond to particular questions within the survey.

  Content Type(s): Staff research, Technical reports JEL Code(s): C, C8, C81, C83 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Retail payments

• The Costs of Point-of-Sale Payments in Canada

  Staff discussion paper 2017-4 Anneke Kosse, Heng Chen, Marie-Hélène Felt, Valéry Dongmo Jiongo, Kerry Nield, Angelika Welte

  Using data from our 2014 cost-of-payments survey, we calculate resource costs for cash, debit cards and credit cards. For each payment method, we examine the total cost incurred by consumers, retailers, financial institutions and infrastructures, the Royal Canadian Mint and the Bank of Canada.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): D, D1, D12, D2, D23, D24, E, E4, E41, E42, G, G2, G21, L, L2 Research Theme(s): Money and payments, Cash and bank notes, Retail payments

• Adoption Costs of Financial Innovation: Evidence from Italian ATM Cards

  Staff working paper 2017-8 Kim Huynh, Philipp Schmidt-Dengler, Gregor W. Smith, Angelika Welte

  The discrete choice to adopt a financial innovation affects a household’s exposure to inflation and transactions costs. We model this adoption decision as being subject to an unobserved cost.

  Content Type(s): Staff research, Staff working papers JEL Code(s): C, C3, C35, D, D1, D14, E, E4, E41 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Cash and bank notes, Digital assets and fintech

• Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies

  Staff working paper 2017-5 Ben Fung, Scott Hendry, Warren E. Weber

  This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E41, E42, E5, E58 Research Theme(s): Money and payments, Cash and bank notes, Digital assets and fintech

• Central Bank Digital Currencies: A Framework for Assessing Why and How

  Staff discussion paper 2016-22 Ben Fung, Hanna Halaburda

  Digital currencies have attracted strong interest in recent years and have the potential to become widely adopted for use in making payments. Public authorities and central banks around the world are closely monitoring developments in digital currencies and studying their implications for the economy, the financial system and central banks.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E4, E41, E42 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Retail payments

• Using Speed and Credit Limits to Address the Procyclicality of Initial Margin at Central Counterparties

  Staff discussion paper 2016-18 Nikil Chande, Nicholas Labelle

  This paper proposes a practical approach to address the procyclicality of initial margin at central counterparties (CCPs) that can work even in periods of extreme stress. The approach allows CCPs to limit the speed of margin increases resulting from spikes in market volatility.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): G, G1, G18 Research Theme(s): Financial system, Financial stability and systemic risk, Money and payments, Payment and financial market infrastructures

• On the Value of Virtual Currencies

  Staff working paper 2016-42 Wilko Bolt, Maarten van Oordt

  This paper develops an economic framework to analyze the exchange rate of virtual currency. Three components are important: first, the current use of virtual currency to make payments; second, the decision of forward-looking investors to buy virtual currency (thereby effectively regulating its supply); and third, the elements that jointly drive future consumer adoption and merchant acceptance of virtual currency.

  Content Type(s): Staff research, Staff working papers JEL Code(s): E, E4, E42, E5, E51, F, F3, F31, G, G1 Research Theme(s): Financial markets and funds management, Market functioning, Money and payments, Digital assets and fintech, Payment and financial market infrastructures

• Credit Risk and Collateral Demand in a Retail Payment System

  Staff discussion paper 2016-16 Héctor Pérez Saiz, Gabriel Xerri

  The recent financial crisis has led to the development of new regulations to control risk in designated payment systems, and the implementation of new credit risk management standards is one of the key issues. In this paper, we study various credit risk management schemes for the Canadian retail payment system (ACSS) that are designed to cover the exposure of a defaulting member.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, C58, G, G2, G21, G23 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Econometric, statistical and computational methods, Money and payments, Payment and financial market infrastructures, Retail payments

• Clearing and Settlement Systems from Around the World: A Qualitative Analysis

  Staff discussion paper 2016-14 Michael Tompkins, Ariel Olivares

  As Canada continues to engage in a dialogue to develop the approach to modernizing its core payment systems, we analyze the core payment systems that exist in countries around the world. We study payment systems in 27 jurisdictions, encompassing a broad range of geographic regions, through three levels of analysis.

  Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E4, E42, L, L1, L14, L15, L5, L52 Research Theme(s): Financial markets and funds management, Market structure, Money and payments, Payment and financial market infrastructures