The bank will collaborate with the Canada Digital Currency Initiative (DCI) team at MIT Media Labs to look at how “advanced technologies could influence the possible design of a CBDC.“
The Bank of Canada has teamed up with the Massachusetts Institute of Technology (MIT) on a 12-month research project aimed at developing a central bank digital currency.
The bank will collaborate with the MIT Media Labs’ Digital Currency Initiative (DCI) team to look into how “new technologies could affect the eventual architecture of a CBDC,” according to a March 16 announcement.
The study, according to the Bank of Canada, is part of a larger development agenda focused on digital currencies
Fintech, and how CBDCs might work in the Canadian environment.
“No decision has been taken on whether to create a CBDC in Canada,” it says, adding that it will provide an update once the research project is done.
This isn’t the first time the MIT DCI has collaborated with a bank on CBDC research this month that the MIT DCI has published CBDC research in collaboration with The Federal Reserve Bank of Boston.
It evaluated a “hypothetical general purpose CBDC” utilizing two alternative models: distributed ledger technology (DLT) and processing transactions in parallel on numerous computers rather than relying on a single ordering server to prevent double-spending.
CBDCs have been grabbing the headlines recently, with Asset Strategies International president Rich Checkan describing them as “concocted in hell by Satan himself” and Edward Snowden warning about the ramifications for privacy and freedom.
President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets states that his administration will prioritize “research and development efforts into the potential design and deployment options” of CBDC based in the United States.
The Secretary of the Treasury and other relevant officials are also obliged to prepare a research report on a local CBDC, while the attorney general is charged with leading an effort to “evaluate any necessary legislative amendments” for a CBDC and to develop a legislative proposal as soon as possible.
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