Bank of Canada and MIT will work together to create the CBDC

Bank of Canada will work with the MIT Media Lab Digital Currency Initiative (DCI) Group. Together they are exploring the technical impact of creating a future CBDC for 12 months.

According to a report by the bank, the study will strengthen the Bank of Canada’s understanding and potential handling of the alleged tool and “focus on exploring and testing possible technical approaches.” To determine how a CBDC can work “.

They clarified from the bank that the CBDC’s impact research plan will be known at the end and that no official decision has yet been made on whether the CBDC will finally be introduced in Canada. However, updates on findings and results will be provided upon completion of the project.

This work is based on DCI’s current research in CBDCs. Last month, he teamed up with the Federal Reserve Bank of Boston, Published a 35-page white paper describing the development of transaction processing software.

Researchers at MIT and the Boston Federal Reserve have released the software as OpenCBDC. With an “open source” license, anyone can inspect, modify, and improve the code.

CBDCs in the United States

On January 20, the US Federal Reserve (FED) published a lengthy article on the dollar-based CBDC entitled “Money and Payments: The US Dollar in the Age of Digital Transformation”. During the process, the company requested input from the public and legislators.

The US Federal Reserve is constantly exploring the possibility of introducing a digital dollar

Jerome PowellThe head of the FED, confirmed it.I would not have progressed with the digital dollar without the support of the White House and Congress.

According to an article on Beincrypto.com, President Joe Biden made a similar request to his administration, asking his cabinet departments to consider how best to prepare for the digital dollar under the latest management order.