estimate a structural two-sided model of a payment choice. We exploit a unique dataset consisting of the Bank of Canada …

for central-bank settlement balances in the Large Value Transfer System (LVTS). The empirical specification controls for … lower bound of the corridor. However, by targeting a slightly higher level, the Bank of Canada could be 95% certain that the …

We use a simple model to study whether private payment systems based on bank deposits can provide the optimal level of … safety. In the model, bank deposits backed by projects are subject to default risk that can be mitigated by a depositor's ex … ante and ex post monitoring. Safe payment instruments issued by a narrow bank can also be used as a back-up payment system …

24/7 payment settlement may impact the demand for central bank reserves and thus could have an effect on monetary …/7 payment settlement induces a precautionary demand for central bank balances. Absent any changes or response by the central … bank, this will put upward pressure on the overnight interest rate in a standard corridor system of monetary policy …

Should a central bank take over the provision of e-money, a circulable electronic liability? We discuss how e …-money technology changes the tradeoff between public and private provision, and the tradeoff between e-money and a central bank …'s existing liabilities like bank notes and reserves. The tradeoffs depend on i) the technological setup of the e-money system (as …

currencies has raised questions about whether there is a need for a central bank digital currency (CBDC) and, if so, what its …

-issued bank notes (national bank notes) and central bank-issued bank notes (Federal Reserve notes) were simultaneously in … Federal Reserve notes were not issued to be a superior currency to national bank notes. Rather, they were issued to enable the … eventually eliminate national bank notes was that they were potentially a source of bank reserves. As such, they could have …