• Wednesday’s announcement by the Bank of Canada indicated that they are collaborating with MIT for research on CBDC technology.
• According to the bank, this project forms part of a wider development agenda that focuses on digital currencies and fintech. It also examines how CBDCs might work in Canada.
• Updates on the bank’s stance on a national CBDC will be given after the 12-month research collaboration.

The Bank of Canada has partnered with MIT to conduct CBDC research. Recent 12-month partnership between the Bank of Canada and the Massachusetts Institute of Technology, (MIT), focused on design of a Central Bank Digital Currency.

According to an announcement made on Wednesday, the bank will collaborate with the MIT Media Labs’ Digital Currency Initiative (DCI) team to analyze how “advanced technologies could affect the potential design of CBDC.”

According to Canada’s central bank, this project forms part of a wider development agenda that focuses on digital currencies and fintech.

The bank stated that “no decision has been made on whether to introduce a CBDC in Canada,” but did say that it would provide an update once the research project with MIT had concluded.

This is not the only crypto-related partnership MIT DCI entered into to support CBDC research. MIT DCI published research about the topic last month in collaboration with The Federal Reserve Bank of Boston.

Dubbed “Project Hamilton,” it had tested a “hypothetical general purpose CBDC” using two potential models. Two models were tested. They used distributed ledger technology, parallel processing transactions on multiple computers and reliance on one ordering server. This prevented double-spending.

The United States will also start assigning resources towards researching CBDCs, according to President Joe Biden’s recent executive order which outlines “the highest urgency on research and development efforts into the potential design and deployment options” of a U.S.-based CBDC.

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