CBDC little threat to Canadian bank liquidity – paper

Bank of Canada research says most bigger banks have enough funding to handle retail CBDC competition

Digital currencies

Analysis by the Bank of Canada concludes that most large Canadian banks would remain sufficiently liquid if a retail central bank digital currency (CBDC) were introduced.

Some experts have expressed fears that retail CBDCs could compete with or replace bank deposits, or that depositors could run to CBDCs during a crisis.

The Bank of Canada analysts performed several stress tests, hypothesising a 50% decline in funding from current accounts and certain highly liquid savings accounts.

The

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.