Bank of Canada partners with MIT

TL; DR Breakdown

• Bank of Canada will partner with MIT on a Canadian CBDC research
• The research will run for 12 months
• The US wants to create a CBDC

The design and subsequent development of potential CBDCs have been in the works across different countries in the past few years. Although some have crossed the finish line, others are still looking to successfully make their way over it. However, the news coming out of Canada mentions that its premier bank has joined forces with the MIT to focus solely on creating a Canadian CBDC.

Canadian CBDC research to run for 12 months

According to the statement, the partnership will run for 12 months with a research into everything related to creating the CBDC. The statement highlights that the research would focus on the influence of new and emerging technologies on a potential Canadian CBDC.

Reports also says that the premier bank believes that the research could be a framework to develop crypto and how they can create a better Canadian CBDC. However, the bank warned that it had not announced the creation of a CBDC as they will need to figure that out after the research period. Notably, the team that would work hand in hand with the Canadian bank will be the DCI team, a small arm of the body.

The US wants to create a CBDC

The MIT team has continued to enjoy massive collaboration across states and countries to create a potential CBDC. According to a new report, asides from the Canadian CBDC, it is working with the Federal Reserve Bank of Boston to look into creating another CBDC. Results were already released for the public and the research looked at the creation of a CBDC from two perspectives.

The first used a DLT, while the second required making parallel transactions. Although most people see CBDCs as a welcome development, the currencies have also been portrayed in a negative light recently. Rich Checkan, the boss of Asset Strategies International, said the currency was Satan’s creation while Edward Snowden was worried about privacy and security.

Going by the recent order by the president of the United States of America, Joe Biden, the country will steadfastly look into the potential development of a CBDC in the coming days. The law has also mandated that the Treasury Secretary and members in the same interest gather as much information they can about the currency. The Attorney General has also been ordered to look into a potential change to rules and regulations pending when the CBDC will be created.