The Bank of Canada is collaborating with MIT to research the potential use of a central bank digital currency. The objective of this project is to explore how CBDCs could operate in different scenarios and what impacts they might have on society and the economy.
The “mit cbdc” is a collaboration between the Bank of Canada and MIT, which will be focusing on creating an international digital currency. The project is expected to launch in 2019.
For a 12-month research project on central bank digital money, the Bank of Canada (BoC) is cooperating with the Massachusetts Institute of Technology (MIT) (CBDC).
According to the release, the bank will collaborate with the MIT Media Lab’s Digital Currency Initiative team to investigate distributed ledger technology (DTL) and its implications for CBDC architecture.
The BoC is already doing more detailed research and development on fintech and digital currencies, according to the release.
The Research’s Findings Will Be Revealed
The bank indicated that an update on the research’s results and outcomes would be given when the study is completed. However, the release said that no decision has been taken on whether or not to implement a CBDC in Canada.
The Bank of Canada said last month that it would investigate alternative business models and system architectures for a digital currency that will be accessible and tied to the Canadian dollar (CAD). Many jurisdictions have CBDC arrangements similar to this.
The paper will be used to guide the bank’s thinking and “advance the public discourse on a central bank currency design,” according to the bank.
CBDCs are gaining popularity across the world.
While Canada announces its interest in CBDC, other nations have already begun investigating its potential in their own territories. Following President Joe Biden’s consent by executive order last week, the United States has likewise agreed to explore CBDC.
According to experts and stakeholders, the executive order is mainly centered on CBDC, with minimal mention of Bitcoin (BTC) or decentralization. However, the United States is currently dragging its feet on establishing a CBDC, which may not happen anytime soon. The discussion about the creation of a CBDC now has about as much support as it does opposition among legislators.
As a consequence, it may be some time before they decide to start a CBDC. Meanwhile, when it comes to the development and application of CBDCs, China is well ahead of the pack. The Chinese digital yen has already completed its test phase and is expected to be deployed across the nation shortly.
The “central bank digital currency g7” is a new project that the Bank of Canada has been collaborating with MIT for. The project aims to create a central bank digital currency.
