The Bank of Canada has partnered with the Massachusetts Institute of Technology (MIT) to work on a 12-month research project focused on developing a central bank digital currency.
As announced on Wednesday, The bank will work with MIT’s Digital Currency Initiative (DCI) team to explore how “advanced technologies could inform the potential design of a CBDC.”.
The Bank of Canada said the project is part of a broader digital currency development programFinancial Technologies and how CBDCs could work in the Canadian context.
note that “No decision has been made on launching a CBDC in Canada yet,” but said he would provide an update once the research project is complete.
This isn’t MIT DCI’s first connection with a bank investigating CBDCsas Cointelegraph previously reported In early February, he published a study on the subject in collaboration with the Boston Federal Reserve Bank.
Dubbed the “Hamilton Project,” it tested a “hypothetical general-purpose CBDC” with two possible models, including distributed ledger technology (DLT) and parallel transaction processing on multiple computers.rather than relying on a single ordering server to avoid double spending.
CBDCs — described by Asset Strategies International Chairman Rich Checkan as “invented by Satan himself in Hell” and warned of their impact on privacy and freedom by Edward Snowden — have been making headlines lately.
As for the President of the United States, Joe Biden, The executive order to ensure the responsible development of digital assets states that his government will give “top priority” to “research and development efforts on potential design and delivery options” for US-based CBDCs.
The executive order also directs the finance minister and other relevant officials to prepare an investigative report on a local CBDC, meanwhile The Attorney General has also been tasked with leading efforts to “evaluate any necessary legislative changes” required for a CBDC, and then rapidly develop a legislative proposal thereafter.
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