Fed creates digital dollar codebase with Massachusetts Institute of Technology

The US central bank is working to create a digital dollar, according to a recently published report.transcript of the speech of the head of the Board of DirectorsFed Lael Brainard. On Thursday, she told members of the San Francisco Innovation Hour webcast that the central bank is “collaborating with researchers at the Massachusetts Institute of Technology (MIT)” to create the CBDC codebase.

Federal Reserve Chairman Jerome Powell(Jerome Powell) has been extremely restrained in the media on the bank's efforts to create a digital dollar. Powell acts like the Fed is just exploring the possibilities of CBDC, but no more. Brainard presented the story in a completely different light.

Brainard explored this topic duringwebcast published on August 13 under the eloquent title “Digital Currency News.” The head of the board of directors said the coronavirus outbreak was a reminder of how far behind the country is in the field of digital payments.

“The Covid-19 crisis is a dramatic reminder of how important a sustainable and reliable payment infrastructure is for all Americans,” Brainard shared her thoughts.

While the Fed is examining the CBDC, Congressproposed a number of bills considering the introduction of the digital dollar this year. Apparently, the Covid-19 pandemic has indeed become an important signal that the country needs a reliable payment system.

Unlike the secretive Powell, Brainard wasmore outspoken during the webcast and revealed that the Boston branch of the Central Bank has a "multi-year" relationship with MIT. Boston School of Technology is well known for encouraging research and development in digital currencies, including through funding Bitcoin developers.

However, not without a fly in the ointment. Brainard added:

"Digital currencies, including digital currenciesCentral Banks (CBDCs) provide opportunities, but also risks associated with privacy, illegal activity and threats to financial stability. That is why we insist that the CBDC payment system be tightly linked to our national currency. "

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