Researchers at the Bank of Canada have proposed a framework for evaluating the costs and benefits of new forms of money, including the possibility of issuing a central bank digital currency (CBDC).

Mohammad Davoodalhosseini and Francisco Rivadeneyra outline both a set of “issues and questions” for policymakers to consider, and a taxonomy to help categorise digital currencies.

Key questions include whether a CBDC would boost efficiency, how monetary policy would be impacted, and what the