Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227813 
Year of Publication: 
2020
Series/Report no.: 
Bank of Canada Staff Discussion Paper No. 2020-2
Publisher: 
Bank of Canada, Ottawa
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
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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