【Macro/Finance webinar】Best Before? Expiring CBDC and Loss Recovery

  • 研討會日期 : 2021-09-02
  • 時間 : 16:00
  • 主講人 : Professor Maarten van Oordt
  • 地點 : online
  • 演講者簡介 : Professor Oordt received his Ph.D. in Economics from Erasmus University Rotterdam. He is currently a Research Advisor in the Banking and Payments Department (BAP) of the Bank of Canada. His research fields are Digital Currency, Financial Institutions, and Risk Management.
  • 演講摘要 : Many central banks are considering issuing digital cash substitutes. An important property of physical cash payments is resilience-for example, imperviousness to power outages and independence of electronic/network coverage. These properties also make cash payments important in remote communities. Policy makers are considering building similar offline payment functionality into digital cash substitutes, while their digital nature allows for novel features that could make them more desirable than physical cash. This paper analyzes the possibility of introducing an expiry date for offline digital currency balances to automate personal loss recovery. Our results show this functionality could have a substantial positive impact on consumer demand for offline digital currency balances. The cost of setting a longer than optimal expiry date is small, while setting an expiry date that is too short has a large negative impact. More information sharing between consumers and the central bank can improve loss recovery but has an ambiguous impact on social welfare.