The impact of a central bank digital currency on payments at the point of sale

Walter Engert, Oleksandr Shcherbakov and Andre Stenzel

No 2024-27, Staff Analytical Notes from Bank of Canada

Abstract: We simulate the impact of a central bank digital currency (CBDC) on consumer adoption, merchant acceptance and use of different payment methods. Modest frictions that deter consumer adoption of a CBDC inhibit its market penetration. Minor pricing responses by financial institutions and payment service providers further reduce the impact of a CBDC.

Keywords: Bank notes; Digital currencies and fintech; Econometric and statistical methods; Financial services (search for similar items in EconPapers)
JEL-codes: C51 D12 E42 L14 L52 (search for similar items in EconPapers)
Date: 2024-12
New Economics Papers: this item is included in nep-cba, nep-mon and nep-pay
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