Deutsche Bundesbank, Germany’s central bank, and MIT have teamed up on a digital currency research project that would explore and design the privacy and security aspects of a central bank digital currency.
As the world of central bank digital currencies progresses, multiple research projects are coming up. Recently, Deutsche Bundesbank, Germany’s central bank, announced a similar new initiative. It teamed up with the Massachusetts Institute of Technology (MIT) for the digital currency research project. Joachim Nagel, President of the German central bank, addressed MIT students recently and mentioned the digital euro.
Meanwhile, Deutsche Bundesbank has partnered with MIT’s Digital Currency Initiative (DCI). It focuses on research in blockchain technology and crypto. Nagel mentioned in his speech that the DCI’s research on central bank digital currencies(CBDCs) interested the bank in the partnership.
Besides, speaking about the digital euro and the global monetary system, he said, “A digital euro would offer the highest possible level of privacy. The Eurosystem would not have access to digital euro users’ personal information. Consumers would gain more control over their personal data.”
Rallying behind the CBDC research project, he claimed the current global payments system has several drawbacks. For Europe, he mentioned it still doesn’t have a single cross-border digital payments solution. He said the digital euro would fill this gap while ensuring privacy and security for users.
His speech went on to explain the current status of the European CBDC project and its challenges. Moreover, he confirmed that the joint CBDC project’s research would focus on data protection and privacy.
In recent times, the advent of a digital euro project and other CBDCs worldwide has become more prominent. Countries like Sweden and Hong Kong have also actively explored this avenue through research initiatives.
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