Yesterday, U.S. Federal Reserve Governor Lael Brainard revealed that the Fed’s research into a digital dollar includes a collaboration between the Boston Fed and the Massachusetts Institute of Technology (MIT). The multiyear project involves developing a “hypothetical” central bank digital currency (CBDC) with results to be shared, including open source code.
Additionally, Brainard said the Fed’s Technology Lab had been building and testing different distributed ledger platforms in association with the Federal Reserves in Cleveland, Dallas and New York.
However, despite forging ahead in testing, there is no commitment to pursue the policy processes needed to launch a CBDC. This would include engaging other departments and possible stakeholders, as well as legal issues such as the potential legal tender status of a digital dollar.
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