The central bank has published three papers related to central-bank digital currencies in the last week, as work proceeds on building the capability for eventually issuing one. (The Logic)

Talking point: The Bank of Canada has said it doesn’t see a need for a CBDC yet, but that hasn’t stopped it from exploring what might happen if it were to issue one. The research papers coming out of the bank address questions such as: should a CBDC be more like cash or bank deposits? What is the effect of a CBDC on a nation’s monetary sovereignty? And how much demand would there be for a CBDC? The bank would consider rolling one out if the use of cash declined or if private currencies gained more popularity, deputy governor Timothy Lane said in October. Meanwhile, some policy experts have recommended the bank proceed with issuing one to ensure the Canadian dollar continues to be used as private cryptocurrencies circulate widely.