The Bank of Canada has recently announced that it will join forces with the Massachusetts Institute of Technology (MIT) to work on a 12 month research project on Central Bank Digital Currency (CBDC).
CBDCs are digital forms of a nation’s fiat currency and they are regulated by that country’s centralized authority.
According to a press release from the Bank of Canada, it will form a partnership with MIT’s Digital Currency Initiative and build on the ongoing research into CBDCs. The Bank of Canada said it will provide updates on the results and findings from the research after the 12-month period.
While the Canada’s central bank claims that it will “focus on exploring and experimenting with potential technology approaches to determine how a CBDC could work in a Canadian context”, there has been no formal decision regarding the possibility of issuing a stablecoin in this country.
CBDC is an area that is gaining a lot of attention and interest from governments worldwide. Last week, The
The announcement comes amid continued research and development in this area. Last week, U.S. President Joe Biden signed executive order, calling for “highest urgency” on CBDC research. MIT has already partnered with the Fed’s Boston branch to work on this project. Philippines and Brazil are also eager to move forward with their CBDC research.
