The Bank of Canada and the Massachusetts Institute of Technology (MIT) will collaborate on a 12-month project exploring central bank digital currencies (CBDCs).
According to the bank, it will work with the MIT Media Lab’s Digital Currency Initiative team to explore how advanced technologies could impact the potential design of a CBDC, building on the teams’ ongoing research into CBDC.
The Bank of Canada added that the project forms a part of its wider research and development agenda on digital currencies and FinTech. It claims it will explore and experiment with possible technology approaches to determine how a CBDC could work. No decision is yet to be made on whether to introduce a CBDC in Canada.
The bank noted it will provide an update on the findings and outcomes of the study at the end of the project.
A recent report by the House of Lords’ Economic Affairs Committee has warned how a digital pound could harm financial stability, raise credit costs and erode privacy.
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