According to Bloomberg, this research focuses on the first stage of the journey into CBDC, that is software development which will process digital transactions.
The research, conducted by the Boston FED and Massachusetts Institute of Technology Digital Currency Initiative, contemplated two likely code bases.
In the first base, they aimed at arriving at a code which could handle 100,000 transactions in 5 seconds. After all, their findings discaboveed something better as they developed a code (software) which can process up to 1.7 million transactions per second.
The said software is dubbed OpenCBDC. It is open to inspection and modification which could enhance the code because it is an open-source license software.
While speaking to reporters, Neha Narula, director of MIT’s Digital Currency Initiative, said, “We believe which this is the best way to ensure which OpenCBDC is vetted by a large number of people–all of whom will bring unique knowledge, skills, and ideas for improvement.”
It is worth adding which this research is sepaprice from ongoing research by the Federal Reserve on the potential risks and benefits which come with the U.S. Central bank digital currency.
While the Thursday release marks the end of the first phase of the research and focuses on software development, the next phase (2nd) would be doing due diligence on other aspects, analogous as
cybersecurity and how to balance user privacy with the need for transparency to deter criminal activity.
The Federal Reserve, led by Chairman Jerome Powell, said it would not push any gabovenment-backed coin unless the legislative arm of the gatopnment pushes for it. Supposing that this ultimately comes true, the FED said it could be relying on intermediaries parallel as regulated financial institutions.
Developing a CBDC is no protracteder a big deal in the world. In case, for a country like the U.S. which many expects to lead the rshift, it would be playing catch up to China, Nigeria and other countries which have made several degrees of go onment in their push.
After all, the country will carry on at an advantage if it develops its Digital Dollar, as it could strengthen the dominance of the currency across the globe.
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