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040 |aCaOODSP|beng|erda|cCaOODSP
0861 |aFB3-5/2026-21E-PDF
1001 |aCheng, Yuteng, |eauthor.
24510|aData externalities, market power, and the optimal design of central bank digital currencies / |cYuteng Cheng, Jonathan Chiu, Mohammad Davoodalhosseini, Janet Jiang.
264 1|a[Ottawa] : |bBank of Canada = Banque du Canada, |c2026.
264 4|c©2026
300 |a1 online resource (50 pages) : |bcolour illustrations.
336 |atext|btxt|2rdacontent
337 |acomputer|bc|2rdamedia
338 |aonline resource|bcr|2rdacarrier
4901 |aStaff working paper = Document de travail du personnel, |y1701-9397 ; |v2026-21
500 |aIncorrect ISSN (1701-9397) printed in this publication.
500 |a"Last updated: June 18, 2026."
504 |aIncludes bibliographical references (pages 35-38).
5203 |a"We study the optimal design of a central bank digital currency (CBDC) in an economy where private payment service providers (PSPs) collect and monetize transaction data and may have market power. Payments data create social benefits through law enforcement and monitoring but also impose privacy costs and negative externalities by enabling profiling and surplus extraction. In our model, the central bank chooses CBDC fees, transaction rewards, and data-collection intensity, taking into account their effects on private payment adoption. We show that a data-collecting CBDC can either raise or lower private payment adoption and aggregate data production relative to cash, depending on the balance between PSP market power and the social costs of privately monetized data. In a calibration to the U.S. economy, the introduction of CBDC raises aggregate data collection, private PSP market share, and PSP profits. But when PSP competition is stronger, data are more valuable, or data-processing costs are lower, the optimal CBDC policy reduces aggregate data production if negative data externalities are sufficiently strong"--Abstract, page [1].
650 0|aCentral bank digital currencies|xEconometric models.
650 0|aPayment|xEconometric models.
650 0|aData protection|xEconometric models.
650 6|aMonnaie numérique de banque centrale|xModèles économétriques.
650 6|aPaiement|xModèles économétriques.
650 6|aProtection de l'information (Informatique)|xModèles économétriques.
7102 |aBank of Canada, |eissuing body.
830#0|aStaff working paper (Bank of Canada)|v2026-21.|w(CaOODSP)9.806221
85640|qPDF|s1.01 MB|uhttps://publications.gc.ca/collections/collection_2026/banque-bank-canada/FB3-5-2026-21-eng.pdf