Is The Federal Reserve Warming Up To Digital Currency?

Is The Federal Reserve Warming Up To Digital Currency?

It would appear so as the Federal Reserve Bank of Boston is partnering with MIT to explore digital currency.

The Federal Reserve Bank of Boston is partnering with MIT on the Digital Currency Initiative (“DCI”). DCI will collaborate with the Bank to build a hypothetical digital currency. The Fed and MIT will collaborate in a multi-year effort to build this hypothetical digital currency. Research findings will be published and any developed code will be made available as opensource software. Jim Cunha is spearheading the Fed’s effort.

A Federal Reserve digital currency initiative – if only exploratory – is long overdue. Digital currencies have increasingly gained traction. A central bank-controlled digital currency would provide infinitely more transparency into money flow. The greatest risk to the Fed in our view is securing a digital currency. CyberSecurity is not a government strength. The greatest risks to consumers are a loss of privacy as well as CyberThreats.