Electronic money and payments

The main objectives of the Bank’s research on electronic money and payments are: first, to deepen our understanding of electronic money and payments as digital alternatives to cash, and their likely evolution and pace of adoption; second, to better comprehend the issues and risks raised by an increased reliance on these alternatives; and third, to establish a view on the role of the Bank with resp [...] The Minister of Finance has considered the Task Force’s recommendations on how to guide the evolution of the payments system in Canada and has taken a number of actions, among them a review of the governance framework for the payments system. [...] The retail payment innovations currently being introduced into the Canadian marketplace, especially innovative uses of existing e-payments, could lead to a further reduction in the use of cash for retail purposes over the longer term.16 On the other hand, the implications for the use of cash of some of the structural and regulatory developments under way are less clear. [...] Any changes to these rules could affect the use of credit cards and thus the use of cash and debit cards.17 It is important for the Bank to continue to monitor both e-money and e-payment developments and study their implications for the demand for bank notes. [...] A portion of this revenue is used to fund the Bank’s operations and reserves; the remaining net 18 Some of these issues have previously been analyzed in the mid-90s as part of the work done in a G-10 committee chaired by Chuck Freedman of the Bank of Canada.