The Federal Reserve Bank of Boston has partnered with the Massachusetts Institute of Technology (MIT) to develop a hypothetical digital currency used by the central bank. In a statement, Boston Fed senior vice president James Cunha who is in charge of the project said that experts from both MIT and Fed will develop software and engine that can be used to develop the country’s digital currency. This is likely to be a challenge considering the size of the U.S economy and the huge number of transactions.
Partnership with other central banks
To make the CBDC project a success, the Fed has announced that it is working with other countries’ central banks and international organizations. Sources close to the project have indicated that in addition to the ongoing experiments, Fed is also developing FedNow, a same-day settlement payment system that Fed is developing separately.