Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/200452
Authors: 
Engert, Walter
Fung, Ben Siu-Cheong
Year of Publication: 
2017
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2017-16
Abstract: 
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. This paper addresses the question of whether a central bank should issue digital currency that could be used by the general public. It begins by discussing the possible motivations for a central bank to issue a digital currency. The paper then sets out a benchmark central bank digital currency (CBDC) with features that are similar to cash. The implications of such a digital currency are explored, focusing on central bank seigniorage, monetary policy, the banking system and financial stability, and payments. Finally, a CBDC that differs from the benchmark digital currency in a significant way is considered.
Subjects: 
Bank notes
Digital currencies
Financial services
Payment clearing and settlement services
JEL: 
E
E4
E41
E42
E5
Document Type: 
Working Paper

Files in This Item:
File
Size
637.17 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.