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MIT/Federal Reserve Bank Release Research on a Possible Central Bank Digital Dollar

Saturday February 5, 2022. 11:34 PM , from Slashdot
'The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology's Digital Currency Initiative have come up with an initial design for a central bank digital currency,' reports Yahoo Finance.

Reuters cautions that the newly-released research does not suggest that the U.S. central bank will move toward launching a CBDC, a step it has said it would not take without clear support from the White House and Congress....' Instead the team 'developed technology that can be adjusted as more policy questions regarding the structure and purpose of a CBDC are addressed.'

The Washington Post describes it as 'a system that can settle the vast majority of payments in less than two seconds, handles more than 1.7 million transactions per second and operates around-the-clock with no service outages in the case of a disruption in its network.'

The Boston Globe adds that 'The team noted there's a lot more work to do in the next phase, including researching various privacy features, and stressed the digital dollar remains hypothetical until the Fed decides whether to move forward with government-backed electronic cash.'

Some context from the Washington Post:
The ultimate product could help extend financial services to people who lack a bank account and make cross-border payments such as remittances safer and easier, said Neha Narula, director of the Digital Currency Initiative at MIT. Narula, in a conference call with reporters, noted that the Boston researchers 'aren't the ones making policy decision on how such a system might operate,' so they have aimed to 'create a flexible system that can work with a variety of models.'
Along with a paper describing the team's work to date, researchers on Thursday published open-source code for the platform that would support the digital currency. Jim Cunha, executive vice president of the Boston Fed, called that a first for the central bank, intended to encourage public input that improves the technology.

Read more of this story at Slashdot.
https://news.slashdot.org/story/22/02/05/2126252/mitfederal-reserve-bank-release-research-on-a-possi...
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