MIT is helping the Boston Fed build a CBDC that can be scaled for consumer use

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MIT is helping the Boston Fed build a CBDC that can be scaled for consumer use

Can MIT help the U.S. catch up to China in the CBDC race?

The MIT Digital Currency Initiative, or DCI, is helping the federal reserve bank of Boston build a digital currency with the goal of scaling for consumer use. The DCI’s director Neha Narula told Cointelegraph:

“We’re trying to build a high throughput, low latency transaction system that could be used by consumers and could handle the security and resilience required for a national currency.”

The multi-year collaboration between the two organizations is still in very early stages and not much information is being released to the public. Yet the focus is not on building a newer version of interbank digital ledger, but rather something that the consumers would be able to use. It is hard to estimate the required transactional throughput of such technology, but considering that the U.S. population is around 330 million and the fact that the dollar is the most widely used currency in the world (some nations have even officially adopted it), this number would have to be rather high.

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Will cryptocurrency replace national currency in the future?

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Wrapping one’s head around the craze that is, cryptocurrency can often be downright confusing.

However, despite the influx of uncertainty, the digital commerce could become the global finance standard in the near future.

For starters, cryptocurrency is any form of currency that only exists digitally or virtually, and “usually has no central issuing or regulating authority,” according to Merriam-Webster’s Dictionary. Based on blockchain technology, the digital currency market determines the value due to supply (amount in circulation) and demand (volume of buyers and sellers).

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