Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/227813
Authors: 
Armelius, Hanna
Claussen, Carl Andreas
Hendry, Scott
Year of Publication: 
2020
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2020-2
Abstract: 
In this paper, we discuss whether the ability of individuals to convert commercial bank money (i.e., bank deposits) into central bank money is fundamentally important for the monetary system. This is a significant question since the use of cash - the only form of central bank money that the public currently has access to - is declining rapidly in many countries. The question is highly relevant to the discussion around whether central banks need to issue a retail central bank digital currency (CBDC). We conclude that depositors' need for control could be a reason why cash or a CBDC is essential, even in countries with strong measures safeguarding commercial bank money.
Subjects: 
Bank notes
Digital Currencies and fintech
Financial services
Payment clearing and settlement systems
JEL: 
E
E4
E41
E42
E5
Document Type: 
Working Paper

Files in This Item:
File
Size
350.94 kB





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