Central Bank Digital Currency: Motivations and Implications Staff Discussion Paper 2017-16 Walter Engert, Ben Fung The emergence of digital currencies such as Bitcoin and the underlying blockchain and distribution ledger technology have attracted significant attention. These developments have raised the possibility of considerable impacts on the financial system and perhaps the wider economy. 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
Cash Versus Card: Payment Discontinuities and the Burden of Holding Coins Staff Working Paper 2017-47 Heng Chen, Kim Huynh, Oz Shy Cash is the preferred method of payment for small value transactions generally less than $25. We provide insight to this finding with a new theoretical model that characterizes and compares consumers’ costs of paying with cash to paying with cards for each transaction. Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Econometric and statistical methods JEL Code(s): D, D0, D03, E, E4, E42
November 16, 2017 Acceptance and Use of Payments at the Point of Sale in Canada Bank of Canada Review - Autumn 2017 Ben Fung, Kim Huynh, Anneke Kosse Merchants universally accept cash. Consumers widely hold cash but also carry debit and credit cards. The cost of using a method of payment has only a small influence on which method consumers use. Large merchants accept all payments, while only two-thirds of small and medium-sized businesses accept credit cards. Merchants report that credit cards are the costliest payment method compared with cash and debit cards. However, costs are not the only consideration. Merchant acceptance of credit accounts for the many con-sumers that want to use credit cards. This interaction between consumers and merchants is known as network externalities. Content Type(s): Publications, Bank of Canada Review articles Topic(s): Bank notes, Digital currencies and fintech, Financial institutions, Payment clearing and settlement systems JEL Code(s): D, D2, D23, D24, E, E4, E41, E42, G, G2, G21, L, L2
April 7, 2017 Bank of Canada unveils commemorative bank note to celebrate Canada’s 150th anniversary of Confederation Media Relations Ottawa, Ontario Bank of Canada Governor Stephen S. Poloz and Parliamentary Secretary to the Minister of Finance Ginette Petitpas Taylor today unveiled a commemorative $10 bank note celebrating the 150th anniversary of Confederation. Content Type(s): Press, Press releases Topic(s): Bank notes
April 7, 2017 Unveiling of Commemorative Bank Note Marking the 150th Anniversary of Canada Remarks Stephen S. Poloz Ottawa, Ontario Governor Stephen S. Poloz unveils a new commemorative $10 bank note marking the 150th anniversary of Canada. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Bank notes
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 Topic(s): Bank notes, Digital currencies and fintech, Financial institutions, Payment clearing and settlement systems JEL Code(s): D, D1, D12, D2, D23, D24, E, E4, E41, E42, G, G2, G21, L, L2
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 Topic(s): Bank notes, Econometric and statistical methods, Financial services JEL Code(s): C, C3, C35, D, D1, D14, E, E4, E41
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 Topic(s): Bank notes, Digital currencies and fintech, Financial services JEL Code(s): E, E4, E41, E42, E5, E58
December 8, 2016 Engaging Canadians: a #bankNOTEable process Remarks Stephen S. Poloz Canadian Museum of History Gatineau, Quebec Governor Poloz, with Ministers Morneau and Hadju, announces the #bankNOTEable woman. Content Type(s): Press, Speeches and appearances, Remarks Topic(s): Bank notes
August 16, 2016 Bank of Canada recognizes Saskatoon Police Service with Counterfeit Deterrence award Media Relations Ottawa, Ontario This award, which has been presented since 2004, recognizes the outstanding achievements of criminal justice professionals and educators involved in the prevention and deterrence of bank note counterfeiting in Canada. Content Type(s): Press, Press releases Topic(s): Bank notes