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Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies

This paper studies the period in Canada when both private bank notes and government issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform. The paper begins with a brief historical review of how these notes came into existence and of the regulations regarding their issuance.


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