Posts tagged Hypothetical cbdc
OMFIF: "CBDCs present new opportunities for handling disputes and fraud" by DCI Team Members
OMFIF: "CBDCs present new opportunities for handling disputes and fraud" by DCI Team Members

Potential designs may involve intermediaries in new and different ways

Central bank digital currencies potentially offer, in a digital form, the advantages of central bank money: settlement finality, liquidity and integrity. However, both offline and online commerce are susceptible to fraud and other kinds of disagreements. The existing techniques for managing fraud and disputes focus on giving users easy access to chargebacks, which relies on intermediaries to resolve disputes. Potential designs for CBDC may involve intermediaries in new and different ways, or may not use intermediaries at all, calling into question how to address fraud if CBDCs become widely used.

Read More
Articles, FeaturedAshley JacobsonNeha Narula, Tadge Dryja, cbdc, Hypothetical cbdc, OpenCBDC, opencbdc
MIT Digital Currency Initiative (DCI) announces research collaboration with the Bank of England on central bank digital currency
MIT Digital Currency Initiative (DCI) announces research collaboration with the Bank of England on central bank digital currency

The Bank of England announced an agreement to collaborate on a twelve-month Central Bank Digital Currency (CBDC) research project with MIT Digital Currency Initiative. The agreement supports and builds on DCI’s ongoing research into CBDC, while also contributing to the Bank of England’s wider research and exploration of central bank digital currencies. While no decision has been made on whether or not to introduce a CBDC in the UK, the work will investigate and experiment with potential CBDC technology designs and approaches, and evaluate key tradeoffs, opportunities, and risks. This type of research can help inform wider policy development by contributing important technical ideas and questions.

Read More
Articles, FeaturedAshley Jacobsoncbdc, OpenCBDC, Hypothetical cbdc, opencbdc, digital fiat currency
"Why Central Bank Digital Currencies?" in Federal Reserve Bank of New York's Liberty Street Economics
"Why Central Bank Digital Currencies?" in Federal Reserve Bank of New York's Liberty Street Economics

DCI Director Neha Narula co-authored the piece, "Why Central Bank Digital Currencies?" published in the Federal Reserve Bank of New York's Liberty Street Economics

“In the past year, a number of central banks have stepped up work on central bank digital currencies (CBDCs – see map). For central banks, are CBDCs just a defensive reaction to private-sector innovations in money, or are they an opportunity for the monetary system? In this post, we consider several long-standing goals of central banks in their support and provision of retail payments, why and how central banks tackle these issues, and where CBDCs fit into the array of potential solutions.”

Read More
Articles, FeaturedAshley Jacobsoncbdc, Hypothetical cbdc, Neha Narula, digital fiat currency
"Still Getting Your Head Around Digital Currency? So Are Central Bankers." Talks with DCI's Neha Narula
"Still Getting Your Head Around Digital Currency? So Are Central Bankers." Talks with DCI's Neha Narula

If you are trying to grasp Bitcoin and understand what China’s digital yuan means, America’s Federal Reserve is right there with you.

America’s Federal Reserve says it is in no rush to issue a digital currency, but it is coming under intense and increasing pressure to research and understand the design and potential of digital money.

Read More
Articles, FeaturedAshley Jacobsoncbdc, Hypothetical cbdc, Neha Narula
CNBC's "Why Central Banks Want To Get Into Digital Currencies" features an interview with DCI's Neha Narula
CNBC's "Why Central Banks Want To Get Into Digital Currencies" features an interview with DCI's Neha Narula

Intense interest in cryptocurrencies, like bitcoin, and the Covid-19 pandemic have sparked debate among central banks on whether they should issue digital currencies of their own. Advocates argue that central bank digital currencies, or CBDCs, can make cross-border transactions easier, promote financial inclusion, and provide payment system stability. Here's how central bank digital currencies could become the future of digital finance.

Read More
Featured, VideosAshley JacobsonNeha Narula, central bank digital currency, Hypothetical cbdc
Neha Narula took part in "Will Digital Dollar Stablecoins & CBDC Co-Exist?" hosted by The Circle's "The Money Movement" Series
Neha Narula took part in "Will Digital Dollar Stablecoins & CBDC Co-Exist?" hosted by The Circle's "The Money Movement" Series

On this week's Money Movement we're joined by Visa's Head of Crypto, Cuy Sheffield; Neha Narula, the Director of MIT's Digital Currency Initiative, an institute leading research and development in crypto, digital currency and now CBDC models; and Robert Bench, AVP at the Federal Reserve Bank in Boston, and a key contributor and collaborator on the future of digital currency with the Federal Reserve.

Read More
Podcast, FeaturedAshley JacobsonNeha Narula, central bank digital currency, digital fiat currency, Hypothetical cbdc
"Boston Fed, MIT partner on central bank digital currency research project" by Mike McSweeney for The Block
"Boston Fed, MIT partner on central bank digital currency research project" by Mike McSweeney for The Block

The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology are partnering on a research effort focused on central bank digital currencies (CBDC).

Federal Reserve governor Lael Brainard spoke about the initiative during an appearance Thursday. In her remarks, Brainard touched on a variety of points around the subject of CBDC and then highlighted the work between the Boston Fed and MIT. Notably, Brainard said that any code developed as part of the initiative would be made public "for anyone to use for experimentation."

Read More
ArticlesAshley JacobsonHypothetical cbdc, cbdc
"Boston’s Federal Reserve Bank and MIT to Tackle Digital Currency Research" by Cointelegraph
"Boston’s Federal Reserve Bank and MIT to Tackle Digital Currency Research" by Cointelegraph

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.

Read More
ArticlesAshley JacobsonHypothetical cbdc, cbdc
"The Federal Reserve Is Experimenting With a Digital Dollar" reports Nikhelish De of Coindesk
"The Federal Reserve Is Experimenting With a Digital Dollar" reports Nikhelish De of Coindesk

The U.S. Federal Reserve is actively investigating distributed ledger technologies and how they might be used for digitizing the dollar.

Federal Reserve Board Governor Lael Brainard said the U.S. central bank has been testing DLT over the past several years to study what a digital currency might do to the existing payments ecosystem, monetary policy, financial stability and the banking sector.

“With these important issues in mind, the Federal Reserve is active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies,” Brainard said Thursday at the Federal Reserve Bank of San Francisco’s Innovation Office Hours…

Read More
ArticlesAshley JacobsonHypothetical cbdc, cbdc
The Boston Herald interviews Jim Cunha for "Boston Fed Bank explores cryptocurrency with MIT"
The Boston Herald interviews Jim Cunha for "Boston Fed Bank explores cryptocurrency with MIT"

The Boston Fed is toying with a digital dollar.

The Hub’s Federal Reserve Bank is teaming up with the Massachusetts Institute of Technology to study the blockchain technology that enables cryptocurrency to be traded. And, based on the latest figures, the currency is red hot.

“We’re not building this for tomorrow, we’re building this for future years,” said Jim Cunha, senior vice president at the Boston Fed.

Boston Fed Assistant Vice President Robert Bench is working for Cunha to rip apart what makes cryptocurrency — sold as Bitcoin, Ethereum, Litecoin and more — be so successful.

Read More
ArticlesAshley JacobsonHypothetical cbdc, cbdc
"Brainard Says Fed Is Conducting E-Money Tests for Research" covered by Craig Torres of Bloomberg
"Brainard Says Fed Is Conducting E-Money Tests for Research" covered by Craig Torres of Bloomberg

The Federal Reserve is conducting experiments with a hypothetical digital dollar for research purposes, though it hasn’t yet committed to issuance that would require a formal policy process involving the government and other stakeholders, Governor Lael Brainard said Thursday.

In addition to the Fed’s own internal work, research teams from the Boston Fed and Massachusetts Institute of Technology are engaged in a “multi-year effort to build and test a hypothetical digital currency oriented to central bank uses,” she said…

Read More
ArticlesAshley JacobsonHypothetical cbdc, cbdc