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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:
publications.gc.ca/pub?id=9.895993&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleEggs 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 typeMonograph - View Master Record
Language[English]
FormatDigital text
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.
Description1 online resource (ii, 45 pages) : illustrations (some colour)
Catalogue number
  • FB3-5/2021-6E-PDF
Subject terms
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