BOC-央行数字货币和银行业务选择

Bank of Canada staff working papers provide a forum for staff to publish work-in-progress research independently from the Bank’s Governing Council. This research may support or challenge prevailing policy orthodoxy. Therefore, the views expressed in this paper are solely those of the authors and may differ from official Bank of Canada views. No responsibility for them should be attributed to the Bank. DOI: https://doi.org/10.34989/swp-2024-4 | ISSN 1701-9397 ©2024 Bank of Canada Staff Working Paper/Document de travail du personnel—2024-4 Last updated: February 8, 2024 Central Bank Digital Currency and Banking Choices by Jiaqi Li,1 Andrew Usher1 and Yu Zhu2 1 Banking and Payments Department Bank of Canada jiaqili@bankofcanada.ca, AUsher@bankofcanada.ca 2 Renmin University of China zhuyuzlf57@gmail.com i Acknowledgements We thank Jason Allen, Matteo Benetton, Jonathan Chiu, Robert Clark, Rod Garratt, Charles Kahn, Anneke Kosse, Mariana Laverde, Youming Liu, Christine Parlour, Nuno Paixao, Nicola Pavanini, Hector Perez-Saiz, Francisco Rivadeneyra, Enchuan Shao, Robert Townsend, Stephen Williamson, and Yufeng Wu for the insightful suggestions. We thank Jeffrey Wu for excellent research assistance in verifying the branch location and geocoding various location datasets. We thank seminar participants at the 2023 Centre for Economic Policy Research (CEPR)—European Central Bank’s Macroeconomic Implications of Central Bank Digital Currencies conference; the 2nd Conference on the Economics of Central Bank Digital Currency hosted by the Bank of Canada and Sveriges Riksbank; Economics of Payments XII Conference hosted by the Federal Reserve Board; the European Economic Association’s 2023 Annual Conference; the European Association for Research in Industrial Economics 2023 Annual Conference; the 2023 Summer Workshop on Money, Banking, Payments, and Finance; the Society for Economic Dynamics 2023 Meeting; the 1st Annual Conference of the Banco Central do Brasil; the Society for Economic Measurement 2023 Annual Conference; the International Association for Applied Econometrics 2023 Annual Conference; the 2023 International Industrial Organization Conference; Canadian Economics Association’s 2022 Annual Conference; the 2022 Tokenomics Conference; and various seminars at the International Monetary Fund, Central Bank of Brazil, Bank of Canada, and the University of Saskatchewan. The views expressed in this paper are those of the authors and not necessarily the views of the Bank of Canada. Yu Zhu acknowledges the support from the Natural Science Foundation of China, Grant no. 72192801. ii Abstract To what extent does a central bank digital currency (CBDC) compete with bank deposits? To answer this question, we develop and estimate a structural model where each household chooses which financial institution to deposit their digital money with. Households value the interest paid on digital money, the possibility of obtaining complementary financial produ