The Federal Reserve Bank of Boston and the Massachusetts Institute of Technology announced a collaboration to explore a central bank digital currency two years ago.
On February 3, banks published the first White Paper digital national currency. The project was called Project Hamilton.
What the developers have currently created is not yet a complete system. It is more of a processing mechanism that can store and move digital currency. The researchers examined two different approaches that could be used to process transactions and technically implement the issuance of a CBDC.
The developers created two complete sets of source code, or “codebases,” for the software systems. The first codebase processes 1.7 million transactions per second. Another codebase processes about 170,000 transactions per second.
In both cases, CBDCs acted as a digital representation of government currency, which can be accessed through a government wallet application.
The group continues its work, but notes that the decision to issue a digital dollar will depend on more than just technological capabilities. The issue will require many additional policy decisions that must be agreed upon by the US Congress and other regulatory experts.
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