Yesterday the Boston Federal Reserve announced that it had concluded Project Hamilton, a central bank digital currency (CBDC) research project with the Massachusetts Institute of Technology (MIT). It will share further results of the technical feasibility work in the coming months. The first report was released in February. According to the U.S. Treasury, it’s likely still some years before the United States decides on whether to issue a digital dollar.
“Project Hamilton took critical early steps toward a deeper understanding of how money might work better for all,” said Boston Fed EVP Jim Cunha.
Project Hamilton built on the experience of the MIT Media Lab Digital Currency Initiative (DCI) and hence rejected blockchain for a retail digital dollar because of speed challenges. However, it borrowed some concepts, such as Bitcoin’s unspent transaction output (UTXO) design which in some ways resembles physical cash. MIT also has a focus on privacy.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
