The Bank of Canada has partnered with the Massachusetts Institute of Technology (MIT) for CBDC research. The cooperation with the institute focused on the development of the central bank’s digital currency is designed for 1 year.
The bank will work with MIT Media Labs’ Digital Curriculum Initiative (DCI) team to analyze how “advanced technology could affect a potential CBDC configuration,” the statement said Wednesday.
According to the Central Bank of Canada, this project is part of an overall development program focused on digital currency, fintech, and the CBDC’s ability to work in a Canadian context.
The bank said it had “not yet decided whether to implement CBDC in Canada,” but said it would update once the research project with MIT was completed.
This is not the first crypto partnership that the MIT DCI CBDC research team has entered into. Last month, MIT DCI published a study on the subject in collaboration with the Federal Reserve in Boston.
As part of the Hamilton project, the team tested a “general purpose CBDC” using two potential models. This model included distributed ledger technology and parallel transaction processing on multiple computers, which avoided double spending when using a single order server.
Under President Joe Biden’s recent executive order, the United States will also begin devoting resources to CBDC research. The document emphasizes the “extreme importance of research and development activities for potential design and deployment opportunities” of the CBDC in the United States.