Posts tagged opencbdc
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.

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Articles, FeaturedAshley JacobsonNeha Narula, Tadge Dryja, cbdc, Hypothetical cbdc, OpenCBDC, opencbdc
MIT Technology Review “The MIT researcher who helps senators understand digital currencies“
MIT Technology Review “The MIT researcher who helps senators understand digital currencies“

Last summer, a special subcommittee of the US Senate met remotely to weigh the benefits of launching a central-bank digital currency, or CBDC—something that could, if optimally designed, transform the US financial system, making it more accessible to more citizens. For senators staring intently at their laptops, this was basically the first day of digital-currency school. And to introduce them to this highly technical world, the first witness that Senator Elizabeth Warren called was MIT Digital Currency Initiative director Neha Narula.

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Articles, FeaturedAshley JacobsonNeha Narula, cbdc, OpenCBDC, opencbdc, Policy
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.

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Articles, FeaturedAshley Jacobsoncbdc, OpenCBDC, Hypothetical cbdc, opencbdc, digital fiat currency
MIT News "MIT experts test technical research for a hypothetical central bank digital currency"
MIT News "MIT experts test technical research for a hypothetical central bank digital currency"

Collaboration with Federal Reserve Bank of Boston yields progress in understanding how a digital currency might be developed in the future.

CAMBRIDGE, Mass. -- In collaboration with a team at the Federal Reserve Bank of Boston, MIT experts have begun designing and testing technical research through which further examination of a Central Bank Digital Currency (CBDC) can be performed in the U.S.

The effort, known as Project Hamilton, is in an exploratory phase, and the research is not intended as a pilot or for public deployment. Instead, the researchers have explored two different approaches that could be used to process transactions, and thus could indicate the technical feasibility of a potential CBDC model. In a process involving significant design flexibility, the MIT group tested factors such as the volume and speed of transactions, and the resilience of the systems in general, among other requirements for a viable digital currency.

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Articles, FeaturedAshley JacobsonOpenCBDC, central bank digital currency, digital fiat currency, opencbdc