Bank of Canada and MIT Announce CBDC Research Project

Canada’s Central Bank and MIT to Work on CBDC Project

Written by Aaron S.,

Editor-In-Chief

Last Updated: March 17, 2022

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The Bank of Canada will be participating in a "twelve-month research project" alongside MIT’s Digital Currency Initiative team.

There are several countries around the world that have already started their central bank digital currency development programs. In fact, 9 of them have already fully launched their CBDCs.

Based on the official report, the Bank of Canada will be working in a year-long agreement with MIT Media Lab’s Digital Currency Initiative (DCI) in an attempt to produce "a potential design of a CBDC."

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The collaboration will enable MIT’s Digital Currency Initiative to evaluate how well a particular design of a CBDC will perform in practice. Likewise, the DCI will share its ongoing research with the Bank of Canada to explore potential approaches to implementing CBDCs.

However, according to the press release, there haven’t been any announcements on whether Canada will actually be adding CBDCs any time soon.

This came right after Biden signed the Executive Order on Crypto which mentions increased efforts on researching and creating a central bank digital currency in the United States.

Likewise, MIT has previously worked with Boston’s Federal Reserve Bank and explored the results of a CBDC prototype, dubbed as the Project Hamilton.