Bank Of Canada Releases Fintech Discussion Paper

In July 2017, the Bank of Canada released a discussion paper outlining a framework for the assessment of risks and opportunities for central banks in connection with Fintech. This paper also more generally explores potential implications of Fintech for central banks, given their mandate over monetary policy, the design and distribution of currency and/or financial stability.

Impact of Fintech on Monetary Policy

One of the reasons that Fintech is being keenly watched by central banks is in connection with its potential implications on monetary policy and the design and distribution of currency. Cryptocurrencies and distributed ledger technology more generally have revived interest in the idea of electronic currency, potentially leveraging such distributed ledger technology. Such concept could have significant implications on a central bank's ability to manage monetary supply.