On Wednesday, The Bank of Canada and the Massachusetts Institute of Technology (MIT) announced their collaboration on a twelve-month research project on Central Bank Digital Currency (CBDC).
The official statement from the Bank reads that it will work with the MIT Media Lab’s Digital Currency Initiative team to research and understand how advanced technologies shape the potential design of a CBDC.
This study will help inform the Bank of Canada’s research effort into CBDC.
The project will cover a part of the Bank’s broader research and development agenda on digital currencies and fintech. The other subject matter includes exploring and experimenting with potential technology approaches to ascertain how a CBDC works.
The statement clarifies that no decision has yet been taken on whether CBDCs in Canada will be introduced.
It also informed that the Bank of Canada will update on the findings and conclusions at the end of the project period.
The anonymity of cryptocurrency is certainly not stopping the countries from exploring other sides of the crypto coin- blockchain technology. The same technology forms the bedrock for a country’s Central Digital Currency. No country wants to miss out on the CBDC race. Recently, Korea announced the completion of the first phase of the mock test of its CBDC and is currently working on phase two.
