MIT DCI & the Bank of England CBDC

in crypto •  3 years ago 

News: MIT adds the Bank of England to its stable of CBDC digital currency research partners

MIT DCI response to Bank of England CBDC discussion paper, from 2020, has some interesting points regarding the thinking behind why central banks are even considering digital currencies.

Resilience and access are related - try getting a credit card merchant account. Indeed, credit card companies will likely be the biggest beneficiaries of a CBDC. "In 2018 alone, more than $24 billion was lost due to financial fraud cases." Such losses are covered by the high interest rates many card holders pay for the luxury of such easy loans.

However, few of us memorise our card numbers - we have a short PIN or a one-time pad - and we can see how so many people lose their keys. I couldn't find anything about this explicitly in the paper, but it looks like all such digital currencies would have to be custodial so that errors can be reversed. This is amusing, in that the weakest link is human.

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  ·  3 years ago  ·  

They will all be released in 2023, China was the testbed.

  ·  3 years ago  ·  

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