The Digital Currency Initiative at the Media Lab will collaborate with Deutsche Bundesbank on central bank digital currency (CBDC) research


Photo by Drew Beamer on Unsplash

Photo by Drew Beamer on Unsplash 

The Digital Currency Initiative (MIT DCI) at the MIT Media Lab and Germany's central bank, the Deutsche Bundesbank, have announced joint research on central bank digital currency (CBDC). This work will focus on privacy-preserving designs for a European CBDC. 

MIT DCI conducts neutral research into digital currency design, and particularly seeks to to ensure that new forms of money are aligned with key democratic values: transparency, accountability, user sovereignty, and privacy. One of the Initiative's main research themes focuses on designing architectures that aim to safeguard user information, while aligning with public policy goals. 

Dr. Joachim Nagel, President of the Bundesbank, announced the collaboration in a talk at MIT April 16, 2024. In his opening remarks, Dr. Nagel discussed why the euro area is considering a digital currency, the importance of users retaining control of their personal data, and what technological and policy challenges the European Central Bank must surmount in order to consider the issuance of a new form of public money. He also shared insights on proposals to issue a digital currency for the euro area of the European Union in a speech entitled the “Digital Euro: Vision, Advancements, and Challenges.”

Following his opening remarks, Dr. Nagel joined DCI Director Dr. Neha Narula for a fireside chat about the research collaboration. 

This event was co-hosted by the MIT Digital Currency Initiative and the MIT Golub Center for Finance and Policy and was attended by MIT students, faculty, and staff, as well as special guests.

The findings of the joint research project will be published and are intended to contribute to deepening knowledge about the application of CBDC both within Europe and worldwide.

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