"Boston’s Federal Reserve Bank and MIT to Tackle Digital Currency Research" by Cointelegraph

By MOHAMMAD MUSHARRAF 

AUG 14, 2020

The Federal Reserve Bank of Boston has entered into a partnership with the Massachusetts Institute of Technology to better understand the concept of digital currencies.

The bank will work with MIT researchers on a multiyear project to develop and test the use cases of a “hypothetical” central bank digital currency (CBDC), said Fed Governor Lael Brainard during her speech at the Federal Reserve Bank of San Francisco.

She said that digital currencies bring both opportunities and threats related to privacy, illicit activity and financial stability, and the Reserve must clearly understand both aspects of it as they proceed towards the creation of a CBDC.

The research with MIT is expected to help the bank gain hands-on experience and understanding of these aspects.