The Bank of Canada (BoC) and Massachusetts
Institute of Technology (MIT) have announced on Wednesday that both parties
have reached an agreement to collaborate in a twelve-month research project on
central bank digital currency (CBDC).
According to the press release, the central
bank will work with the MIT Media Lab’s Digital Currency Initiative team to
explore how advanced technologies could impact the potential design of a CBDC.
Such an exploration will help the BoC’s efforts on the matter.
“The project forms part of the Bank’s wider
research and development agenda on digital currencies and fintech. It will
focus on exploring and experimenting with potential technology approaches to
determine how a CBDC could work. No decision has been made on whether to
introduce a CBDC in Canada,” the Bank of Canada noted.
No major details were provided as of press
time, although the BoC specified that it would provide an update on the project’s
findings and outcomes at the end of the project period.
Digital Currency Initiative Background
About the MIT Digital Currency Initiative,
the project’s website details it as follows: “There is still a great deal of
fundamental research and development needed before the technology can deliver
on these promises, and academia has a vital role to play in that endeavor.
Venture capitalists, entrepreneurs, and a new breed of crypto investor have
collectively invested billions in
blockchain-based startups and so-called ICOs, at the same time that Wall Street
banks, marquee technology companies, and government and international agencies
have rushed to establish blockchain research labs. Yet leading experts in
cryptography and economics are only now starting to weigh in on questions
around the security of this technology and its broader impact on the economy. That’s
why the MIT Media Lab launched the MIT Digital Currency Initiative.”
If plans go ahead as expected, new updates
on the project will come in March 2023.
The Bank of Canada (BoC) and Massachusetts
Institute of Technology (MIT) have announced on Wednesday that both parties
have reached an agreement to collaborate in a twelve-month research project on
central bank digital currency (CBDC).
According to the press release, the central
bank will work with the MIT Media Lab’s Digital Currency Initiative team to
explore how advanced technologies could impact the potential design of a CBDC.
Such an exploration will help the BoC’s efforts on the matter.
“The project forms part of the Bank’s wider
research and development agenda on digital currencies and fintech. It will
focus on exploring and experimenting with potential technology approaches to
determine how a CBDC could work. No decision has been made on whether to
introduce a CBDC in Canada,” the Bank of Canada noted.
No major details were provided as of press
time, although the BoC specified that it would provide an update on the project’s
findings and outcomes at the end of the project period.
Digital Currency Initiative Background
About the MIT Digital Currency Initiative,
the project’s website details it as follows: “There is still a great deal of
fundamental research and development needed before the technology can deliver
on these promises, and academia has a vital role to play in that endeavor.
Venture capitalists, entrepreneurs, and a new breed of crypto investor have
collectively invested billions in
blockchain-based startups and so-called ICOs, at the same time that Wall Street
banks, marquee technology companies, and government and international agencies
have rushed to establish blockchain research labs. Yet leading experts in
cryptography and economics are only now starting to weigh in on questions
around the security of this technology and its broader impact on the economy. That’s
why the MIT Media Lab launched the MIT Digital Currency Initiative.”
If plans go ahead as expected, new updates
on the project will come in March 2023.
Source: https://www.financemagnates.com/cryptocurrency/news/bank-of-canada-and-mit-to-work-on-joint-cbdc-collaboration/