The Central Bank of Canada, Banque du Canada in conjunction with the Massachusetts Institute of Technology has publicly declared their decision to delve into a joint Central Bank Digital Currency (CBDC) research. In the published Press Release, it was stated that the research will run concurrently for a year.
Banque du Canada has guaranteed that after one year, all findings and projections from the research will be published and made available to the public. The project will be conducted under MIT Media Labs’ Digital Currency Initiative (DCI) squad to discover the effect of upgraded technology on the design of a functional CBDC.
The joint research will utilize DCI’s present exploration on CBDC to upscale its analysis. It will also heighten Banque du Canada’s efforts towards the county’s central bank digital currency investigations although, at the time of this writing, no decision had been made by the Central Bank of Canada to issue its Canadian CBDC.
The bank plans to engage in this exercise to further contribute to one of its planned programs which is to promote research and development towards digital assets and financial technology systems. Its focus is analyzing and having an understanding of CBDC design, standards, and policy that is effective and efficient.
The project comes at a time when CBDC research is becoming a much sought-after task. The decision to issue a central bank digital currency challenges many countries to conduct deliberate and in-depth research on CBDC designs and regulations.
CBDC Research Upscaled
The executive order issued by President Joe Biden on crypto-assets is billed to contribute to the upscaling of CBDC issuance in the United States. He called on government agencies and other regulatory bodies to ensure that all threats and consequences involved in buying, selling, or holding crypto are spelled out as well as their approach towards
Just like Banque du Canada, Bangko Sentral ng Pilipinas (BSP) the Central Bank of Philippines, has no current plans to host its CBDC but has planned to commence a research program on the general central bank digital currency.
The Philippine program “Project CBDC-Ph” bothers on the wholesale of CBDC after demystifying the level of security and liquidity rate of central bank digital currencies.