Public policy objectives and the next generation of CPA systems

This will allow the CPA to anticipate the changing needs of industry and society and position itself to enable innovative products and services to emerge that best meet the public policy objectives.3 Of course, to do this, it is necessary to understand what the public policy objectives mean for CPA payment systems and develop a payment system design that has attributes that best meet the public po [...] The third contribution of this paper, and an important innovation, is the development of an analytical framework to systematically consider the trade-offs of the various attributes to achieve the public policy objectives (PPOs) for the Canadian payments ecosystem. [...] We use the analytical framework to provide a perspective on the possibilities frontier in Canada, to position the ACSS and the LVTS in relation to that frontier, and to identify key issues to investigate to modernize the CPA systems in a way that best meet the PPOs. [...] Given the importance of these systems, they tend to settle in central bank funds to support finality of payments.8 The second part of the definition implies that a system must meet a minimum level of importance in the payments ecosystem to be considered a core system. [...] Finally, core systems typically exhibit strong network externalities and economies of scale because of the fixed cost of building the system and of being a participant and the low marginal cost of providing the service.