The Bank of Canada and the Massachusetts Institute of Technology are investigating CBDC

The Central Bank of Canada has joined forces with the Massachusetts Institute of Technology to conduct research on a central bank digital currency (CBDC).

The study will be carried out for one year. The final result will notify the financial sector about the possible benefits of digital currency and its possibilities within the monetary system. In a statement from the central bank, it was said that Canada was included in the list of other states exploring the possibilities of CBDC. The study will further define how “advanced technologies may influence potential CBDC design”. This study is a state program to shape the banking system and improve future financial technologies. It is not yet entirely clear whether the Canadian government will introduce CBDC into the country’s currency system, as the central bank has said that plans for further actions will be announced when the work is completed. CBDC is a digital form of fiat currency. Unlike the decentralized aspect of digital assets, CBDC is controlled by states. Also, many politicians believe that this financial system is safer than cryptocurrency.