00000nam 2200000za 4500 9.859876 CaOODSP 20221107160344 cr ||||||||||| 180731s2018 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2018-36E-PDF Davoodalhosseini, S. Mohammad R. Central bank digital currency and monetary policy [electronic resource] / by S. Mohammad R. Davoodalhosseini. [Ottawa] : Bank of Canada, 2018. ii, 42, 15 p. : col. charts. Bank of Canada staff working paper, 1701-9397 ; 2018-36 "July 2018." Includes bibliographical references (p. 41-42). "Many central banks are contemplating whether to issue a central bank digital currency (CDBC). CDBC has certain potential benefits, including the possibility that it can bear interest. However, using CBDC is costly for agents, perhaps because they lose their anonymity when using CBDC instead of cash. I study optimal monetary policy when only cash, only CBDC, or both cash and CBDC are available to agents. If the cost of using CBDC is not too high, more efficient allocations can be implemented by using CBDC than with cash, and the first best can be achieved. Having both cash and CBDC available may result in lower welfare than in cases where only cash or only CBDC is available. The welfare gains of introducing CBDC are estimated as up to 0.64% for Canada"--Abstract, p. ii. Includes abstract in French. Banks and banking, Central Electronic funds transfers Monetary policy Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2018-36. (CaOODSP)9.806221 PDF 1.62 MB https://publications.gc.ca/collections/collection_2018/banque-bank-canada/FB3-5-2018-36-eng.pdf