Security of a CBDC Staff analytical note 2020-11 Cyrus Minwalla Security is an important element in ensuring public confidence in a central bank digital currency (CBDC). This note highlights the required security properties of a CBDC system and the challenges encountered with existing solutions, should the Bank of Canada choose to issue one. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E42, E5, E51, O, O3, O31 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Designing a CBDC for universal access Staff analytical note 2020-10 John Miedema, Cyrus Minwalla, Martine Warren, Dinesh Shah If the Bank of Canada issues a central bank digital currency, the technology should be designed for universal access. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E41, O, O3, O31 Research Theme(s): Money and payments, Cash and bank notes, Digital assets and fintech, Payment and financial market infrastructures, Retail payments
Privacy in CBDC technology Staff analytical note 2020-9 Sriram Darbha, Rakesh Arora Privacy is a key aspect of a potential central bank digital currency system. We outline different technical choices to enact various privacy models while complying with the appropriate regulations. We develop a framework to evaluate privacy models and list key risks and trade-offs in privacy design. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E42, E5, E51, O, O3 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures
Technology Approach for a CBDC Staff analytical note 2020-6 Dinesh Shah, Rakesh Arora, Han Du, Sriram Darbha, John Miedema, Cyrus Minwalla In this note, we highlight a range of technical options and considerations in designing a contingent system for a central bank digital currency (CBDC) in Canada and explore how these options achieve stated public policy goals. Content Type(s): Staff research, Staff analytical notes JEL Code(s): E, E4, E42, E5, E51, O, O3, O31 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Retail payments
Technology Adoption in Input-Output Networks Staff working paper 2019-51 Xintong Han, Lei Xu We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C6, C61, L, L2, L23, L8, L86, O, O1, O14, O3, O33 Research Theme(s): Models and tools, Economic models, Structural challenges, Digitalization and productivity
The Cyber Incident Landscape Staff analytical note 2019-32 Nikil Chande, Dennis Yanchus The Canadian financial system is vulnerable to cyber threats. But for many firms, cyber risk is difficult to quantify. We examine public information on past cyber incidents to better understand the current risk landscape and find that a holistic view is needed to fully grasp the nature of this risk. Content Type(s): Staff research, Staff analytical notes JEL Code(s): G, G2, G28, M, M1, M15, O, O3, O33, O38 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial stability and systemic risk
Changing Fortunes: Long-Termism—G-Zero, Artificial Intelligence and Debt Staff discussion paper 2019-12 Stephen S. Poloz This paper discusses three long-term forces that are acting on the global economy and their implications for companies and policy-makers. Content Type(s): Staff research, Staff discussion papers JEL Code(s): E, E6, E63, F, F0, F02, F1, F15, F5, F53, F6, H, O, O1, O11, O3, O33 Research Theme(s): Financial system, Financial stability and systemic risk, Structural challenges, Demographics and labour supply, Digitalization and productivity, International trade, finance and competitiveness
Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution Staff discussion paper 2019-11 Stephen S. Poloz This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.” Content Type(s): Staff research, Staff discussion papers JEL Code(s): C, C5, E, E3, O, O1, O11, O3, O33 Research Theme(s): Financial system, Financial stability and systemic risk, Models and tools, Economic models, Monetary policy, Monetary policy framework and transmission, Structural challenges, Digitalization and productivity
Blockchain Revolution Without the Blockchain Staff analytical note 2018-5 Hanna Halaburda The technology behind blockchain has attracted a lot of attention. However, this technology is for the most part not well understood. There is no consensus on what benefits it may bring or on how it may fail. Content Type(s): Staff research, Staff analytical notes JEL Code(s): D, D8, G, G2, O, O3, O33 Research Theme(s): Money and payments, Digital assets and fintech, Payment and financial market infrastructures, Structural challenges, Digitalization and productivity
Capital-Goods Imports and US Growth Staff working paper 2018-1 Michele Cavallo, Anthony Landry Capital-goods imports have become an increasing source of growth for the U.S. economy. To understand this phenomenon, we build a neoclassical growth model with international trade in capital goods in which agents face exogenous paths of total factor and investment-specific productivity measures. Content Type(s): Staff research, Staff working papers JEL Code(s): E, E2, F, F2, F4, O, O3, O4 Research Theme(s): Models and tools, Economic models, Monetary policy, Real economy and forecasting, Structural challenges, Digitalization and productivity, International trade, finance and competitiveness