PROVIDENCE – It’s too soon to tell whether a central bank digital currency could work.
This was the conclusion of a recently completed research project between the Federal Reserve Bank of Boston and the Massachusetts Institute of Technology.
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The project partners earlier this year published preliminary findings on their exploration into the technical feasibility of a central bank currency. In December, the research project, known as Project Hamilton, was deemed completed, according to a news release from the Boston Fed.
The research was never intended to support or negate the prospect of a digital central bank currency, instead intended to be “agnostic” about policy decisions, according to Boston Fed Executive Vice President Jim Cunha.
While the research offered early insights into how various technologies could be used to manage and transfer digital currency, researchers consider it a preliminary “foundation,” with more study needed.
“We hope that this collaborative, open-source research effort is a model for researchers from academia and the public sector to build on as we explore the future of money,” Neha Narula, director of the Digital Currency Initiative at MIT, said in a statement.
Project leaders plan to continue adding to the open source research software, and are urging other researchers to do the same.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
