Bank of Canada on the way to a national digital currency

Canada opens its mind to MNBC. – while the United State It appears that he is groping his way to create a potential Central Bank (MNBC) digital currency, and its neighbor is looking for concrete answers. In fact, the Bank of Canada has just announced its partnership with the Massachusetts Institute of Technology (MIT) on the topic of the feasibility of setting up MNBC in Canada.

The Bank of Canada and the Massachusetts Institute of Technology collaborated on the MNBC project

in one Press release From 16 March 2022, Bank of Canada announced that it has concluded a cooperation agreement with the Massachusetts Institute of Technology (MIT) On the MNBC Project. As part of this agreement 12 monthsThe Bank of Canada will work with the team Digital Currency Initiative (DCI) from the Massachusetts Institute of Technology to study how “advanced technologies may affect the potential design of MNBC.”

Furthermore, the Bank of Canada announced that this agreement is part of a bigger programdevelopment of MNBC, fintech and Feasibility of MNBC in the Canadian economy. However, I cautioned that this study only its buildings. Indeed, the Canadian Bank said:

“No decision has been made regarding the introduction of MNBC in Canada.”

Once the research project is completed, the Bank has agreed to provide a a report About the viability of a digital currency in Canada. Thus, we should know more during First Quarter 2023.

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MIT’s Involvement in MNBCs

This isn’t the first time that MIT, and more specifically the DCI team, has partnered with a bank to conduct research on MNBCs. In fact, last February, a research paper on this topic was published in collaboration with Federal Reserve Bank of Boston.

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This project is dubbed “Project Hamilton” It made it possible to test “virtual general-purpose MNBC” using two types of models: Distributed Ledger Technology (DLT) on the one hand, and Transaction processing On the other hand.

The first objective of this project was to design a transaction processor that meets the requirements SpeedFrom the flow Based on durability About the possible failures of the main retail payment system.

On the other hand, Several lessons on MNBC In this report. Thus, it appears that MNCs, other than bank accounts, can:

  • Support crypto payment proofs
  • Perform more complex transfers, to and from multiple sources of funds
  • View variable transaction limits.

Whatever the case, MNBC isn’t always viewed positively. By way of clarification, the bill should be mentioned “ Say no to the Silk Road Law » It was introduced by two US senators and aims to ban the digital yuan on US soil.

After China, it is now Canada’s turn to take an interest in central bank digital currencies. Will Canada announce tomorrow that Bitcoin has become legal tender? In the future I will tell. In the meantime, do not remain negative and Start buying your first bitcoins on Kucoin ! (affiliate link)

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