Financial services

• Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency

  Staff Working Paper 2020-7 Kim Huynh, Jozsef Molnar, Oleksandr Shcherbakov, Qinghui Yu

  Using a two-stage model, we study the determinants of Canadian consumers’ choices of payment method at the point of sale. We estimate consumer preferences and adoption costs for various combinations of payment methods. We analyze how introducing a central bank digital currency would affect the market equilibrium.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Bank notes, Digital Currencies and Fintech, Financial services JEL Code(s): C, C5, C51, E, E4, E42, L, L1, L14, L5, L52

• A Uniform Currency in a Cashless Economy

  Staff Analytical Note 2020-7 Walter Engert, Ben Fung

  A number of questions can arise when considering the implications of a cashless society. This note considers whether cash is necessary for a uniform currency.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Bank notes, Digital Currencies and Fintech, Financial services, Payment clearing and settlement systems JEL Code(s): E, E4, E41, E42, E5

• Cashless Bank Branches in Canada

  Staff Analytical Note 2019-29 Walter Engert, Ben Fung

  Cashless or tellerless bank branches have proliferated in several countries in recent years. In a cashless bank branch, teller or counter services such as cash withdrawals, deposits and cheque-cashing are not available.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Bank notes, Digital Currencies and Fintech, Financial services JEL Code(s): E, E4, E41, E42, E5, E51

• Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods

  Staff Working Paper 2019-32 Kim Huynh, Gradon Nicholls, Oleksandr Shcherbakov

  Recent consumer and merchant surveys show a decrease in the use of cash at the point of sale. Increasingly, consumers and merchants have access to a growing array of payment innovations as substitutes for cash.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Bank notes, Digital Currencies and Fintech, Econometric and statistical methods, Financial services JEL Code(s): C, C5, C51, L, L1, L13, L15, L8, L81, L9, L96

• A Tale of Two Countries: Cash Demand in Canada and Sweden

  Staff Discussion Paper 2019-7 Walter Engert, Ben Fung, Björn Segendorf

  Cash use for payments has been steadily decreasing in many countries, including Canada and Sweden. This might suggest an evolution toward a cashless society. But in Canada, cash in circulation relative to GDP has been stable for decades and has even increased in recent years. By contrast, the cash-to-GDP ratio in Sweden has been falling steadily. What has caused this difference? Are there lessons to be learned from comparing the Canadian and Swedish experiences?

  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

• Explaining Unusual Cash Patterns in 2018

  Staff Analytical Note 2019-22 Walter Engert, Ben Fung, Jozsef Molnar, Gradon Nicholls

  There was an unusually large decline of bank notes in circulation in October 2018. Some have argued that this was due to the legalization of cannabis in Canada in mid-October.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Bank notes, Digital Currencies and Fintech, Financial services JEL Code(s): E, E4, E41, E42, E5, E58
• May 6, 2019

  Risk Sharing, Flexibility and the Future of Mortgages

  Remarks Stephen S. Poloz Canadian Credit Union Association and Winnipeg Chamber of Commerce Winnipeg, Manitoba

  Governor Poloz talks about Canada’s housing market and how the mortgage market could evolve to give Canadians more choice, make the economy more flexible and lower the level of financial system risk.

  Content Type(s): Press, Speeches Topic(s): Financial services, Financial stability, Housing, Recent economic and financial developments, Trade Integration

• 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

• 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