The Central Bank of Canada and the Massachusetts Institute of Technology (MIT) will collaborate on the creation of a central bank digital currency (CBDC). CBDCs are digital forms of a country's fiat currency that are regulated by a nation's centralized monetary authority.
The deal, announced in a press release, will see the Bank of Canada work with MIT's Digital Currency Initiative to develop CBDC research that will last twelve months. After this period, the Bank of Canada says it will provide an update on the research project results.
While the centralized bank says it will largely focus on how this form of digital currency could work in a Canadian context, it stressed that no formal decision has been made to introduce a CBDC in the country.
The announcement comes amid ongoing research and development in this sector. Last week, The Block got Biden’s executive order on digital assets four hours before it was pointed out that the US Federal Reserve should continue its research on a CBDC. MIT has previously worked with the Fed's Boston branch on CBDC research.
COMMENT. Remember that the block-chain system is a system of false democracy. There are equal conditions between the nodes, but it is like arguing that the Knights Templar were democratic because they shared food and property. Now mining is reserved for a few supercomputer owners. The common citizen who buys cryptocurrencies has infinite possibilities of being scammed, from the Ponzi method to the theft of badly invested money. Combining an anarchist system with a state system is impossible. This is demonstrated by Meta (Facebook) who has given up on launching its cryptocurrency. So we hope that the world will realize the validity of the proposed exhibition of digital currency that respects the canons of the CBDC. We are not MIT. Chapeau for MIT engineers. But we have the only technical solution to the CBDC problem.