Large cap on Canadian CBDC curbs disintermediation

Bank of Canada facade

The limit on how much central bank digital currency (CBDC) any Canadian may hold mitigates the risk of it crowding out bank deposits, according to central bank research. 

The Bank of Canada working paper by Jiaqi Li, Andrew Usher and Yu Zhu also claims the limit would have no significant negative impact on consumer welfare.

Households constrained by the C$25,000 (US$18,600) limit are a minority, and tend to hold more liquid assets, say the authors: “Since this large limit only affects a small

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