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

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account