Alt tag
Bank of Canada economist Jiaqi Li will be presenting at this seminar. The Economic Speaker Series is a free lecture and discussion series.

Central Bank Digital Currency and Banking Choices

Economics Speaker Series Seminar will feature Jiaqi Li, Bank of Canada economist

Event

Date: Friday, March 3
Time: 3 pm
Location: Arts 106

About this event

Bank of Canada economist Jiaqi Li will be presenting at this Economics Speaker Series Seminar. 

To what extent does a central bank digital currency compete with traditional financial institutions? We develop and empirically estimate a structural model where each household decides in which institution to deposit their liquid digital balance, taking into account the utilities from holding liquid assets (in cash and digital money) and from potentially taking out a mortgage, in addition to the branch networks.

While financial institutions tend to provide higher utilities from liquid asset holdings through higher deposit rates and from the complementarity between deposit accounts and loans, a non-interest-bearing CBDC that does not provide lending services can still have nonnegligible impacts on financial institutions by providing better branch networks. We find that if every (no) bank branch is a service location for CBDC, it can crowd out the deposits by 28.9% (1.2%) on average across banks. However, introducing even a very large holding limit on CBDC can significantly reduce its uptake.


Upcoming Events

Together We are Home

May 20-30, 2025
An Asian Heritage Month art exhibition showcasing artists from across USask

Preparing for Quantum 2.0

Jun 9, 2025
The Herzberg Memorial Public Lecture is part of the 2025 CAP Congress hosted at USask from June 9-13

2025 Canadian Association of Physicists Congress

Jun 9-13, 2025
The national association’s annual conference takes place at USask from June 9-13

 

See all events