MIT and Bank of Canada Working Together on CBDC Research Project

An interesting collaboration has just revealed its plans on working on a 12-month project on a central bank digital currency (CBDC). The Bank of Canada has partnered up with the Massachusetts Institute of Technology on this joint CBDC project.

The official press release states that the bank will be closely working with the university's Media Lab’s Digital Currency Initiative team to research the impact of advanced tech on potential CBDCs.

The Bank of Canada officially commented that the project will be focusing on the potential tech concerned with the functionalities and experimentations of a CBDC. Further comments revealed that at the moment there has been no decision as to the implementation of a CBDC in Canada's financial system.

The website of the projects gives away further important details about the ordeal. For one the site makes it clear that this is only the beginning, and that a “great deal of fundamental research and development needed before the technology can deliver”. The comments also question the greater impact of the CBDC technology as a whole on the global economy, despite billions of dollars already invested in these types of projects as well as other ambiguous ones.

No further details were revealed by wither party, but the Bank of Canada has specified that it will update the public on further developments.