The Bank of Canada is partnering with the Massachusetts Institute of Technology (MIT) to work on a 12-month research project aimed at developing a central bank digital currency.
According to Wednesday’s announcement, the bank will be working with MIT Media Labs’ Digital Currency Initiative (DCI) team to find out how “advanced technology influences potential CBD design.”
The Bank of Canada said the project is part of a broader agenda for the development of digital currencies and fintech, and how a central bank digital currency can function in the Canadian context.
He cautions that “no decision has been made to introduce CBDC in Canada” but said he would provide an update when the research project is completed.
This is not MIT DCI’s first partnership with research bank CBDC, as Cointelegraph previously reported that it published an article on the topic in early February in collaboration with the Federal Reserve Bank of Boston.
Called the “Hamilton Project”, it tested a “virtual public CBD” using two possible models, including distributed ledger technology (DLT) and multi-machine parallel transaction processing, instead of relying on a single query server to prevent double consumption.
Headlines have been making headlines lately, with International Asset Management head Rich Chekan describing it as “built by the devil himself in hell” and Edward Snowden warning of the implications for privacy and freedom.
Regarding U.S. President Joe Biden’s executive order to ensure the responsible development of digital assets, he made clear that his administration will put “extremely urgent research and development efforts into potential design and distribution options” for the U.S.-based CBD.
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The Executive Order also directs the Secretary of the Treasury and other relevant officials to prepare an exploratory report on the domestic CBD, while the Attorney General is also tasked with leading efforts to “evaluate any necessary legislative changes” needed for the CBD and quickly develop an account thereafter. .