US Fed and MIT University published a joint Technical Research report for US CBDC

• In the current time where blockchain and cryptocurrency uses are at a peak and showing the trend only to move more upwards, countries across the globe are considering taking advantage of it
• China is all set to launch its digital Yuan, South Korea has completed its 1st phase of two-phased CBDC development programs, and India has announced it for next year and many more. 
• Bank of America lately reported that America could have seen its digital currency till 2030

Recently, with the Massachusetts Institute of Technology and the Federal Reserve of Boston, they developed an open-source research project. The project released on Thursday was about the Digital Currency Initiative in the US. Central Bank Digital Currency or CBDC is seeking a lot of attention from countries and authorities. 

Recent collaborative Research paper about US CBDC development 

The Research paper did not mention any plan regarding the development of CBDC as; first, it has to pass by Congress. Executive Vice President of Boston Federal Reserves, Jim Cunha, said that there was no plan or decision to move further the research phase of digital currency. If a CBDC is to be launched, it will evolve and develop with time. 

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VP of Boston Fed further said that it is crucial to see how these new technologies would support and back any CBDC and what challenges it could face. The current collaboration between MIT and Fed technologists has developed a CBDCE research model to learn more about the tech. All these choices while development should be recognized and considered at the time of CBDC designing.

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Project Hamilton

The program named ‘Project Hamilton,’ which is focused on the development of CBDC, would take several years. The project will be in phases, out of which the first phase will be focused on flexible and resilient software development. The theoretical research paper that consists of experimental code estimated that the system can handle 1.7 million transactions per second.

Take of countries across the globe

Countries are adopting or seeking to adopt blockchain technology for various aspects, gradually recognizing its potential. The initial use of blockchain was for transaction purposes, as the world observed with the launch of Bitcoin. Later with more innovations in the technology, it is molded and flexed for different tasks.

The strength of the currencies of nations across the world is their priority. The US Dollar had this privilege most of the time, but now in the age of digital currency, many countries are thinking of it as a chance to put themselves first mover in a new stream. China has planned to launch its CBDC, while India has also announced its digital currency next year. 

Apart from cryptocurrencies, smart features and use cases of tech increased drastically. Still, nations and their authorities are seeking their space in the field, for which many of them are working and developing their digital currencies. In the case of US CBDC development, Federal Reserves Chairman Jerome Powell insisted that the country should focus on making it right instead of making it first.