Eggs in one basket : security and convenience of digital currencies / by Charles M. Kahn, Francisco Rivadeneyra and Tsz-Nga Wong.: FB3-5/2021-6E-PDF

"Digital currencies store balances in anonymous electronic addresses. We analyze the trade-offs between the safety and convenience of aggregating balances in addresses, electronic wallets and banks. In our model, agents balance the risk of theft of a large account with the cost to safeguarding a large number of passwords for many small accounts. Account custodians (banks, wallets and other payment service providers) have different objectives and trade-offs along these dimensions; we analyze the welfare effects of differing industry structures and interdependencies. In particular, we examine, the consequences of “password aggregation" programs, which, in effect, consolidate risks across accounts"--Abstract, page ii.

Permanent link to this Catalogue record:
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Publication information
Department/Agency Bank of Canada, issuing body.
Title Eggs in one basket : security and convenience of digital currencies / by Charles M. Kahn, Francisco Rivadeneyra and Tsz-Nga Wong.
Series title Staff working paper = Document de travail du personnel, 1701-9397 ; 2021-6
Publication type Series - View Master Record
Language [English]
Format Electronic
Electronic document
Note(s) Includes bibliographical references (pages 29-32).
Publishing information Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, January 28, 2021.
©2021
Author / Contributor Kahn, Charles M., author.
Description 1 online resource (ii, 45 pages) : illustrations (some colour)
Catalogue number
  • FB3-5/2021-6E-PDF
Subject terms Digital currency.
Monnaie électronique.
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