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Boston Fed's first look at digital U.S. dollar nearly done, official says

The first phase of a multi-year research project the Boston Federal Reserve is doing with the Massachusetts Institute of Technology on the technology that could be used for a digital dollar is nearly done and could be released over the next month or so, a Boston Fed official said on Wednesday.

The initial findings from the Boston Fed research are "basically done" and will include open-sourced code that could serve as a potential model for a central bank digital currency, or CBDC, said Jim Cunha, a senior vice president with the Boston Fed, during a virtual panel focused on payments. It will also focus on the system's ability to handle tens of thousands of transactions per second, he said.

Powell said last week that the discussion paper will launch a process for collecting feedback from the public about the potential uses of a digital dollar, as well as the risks and benefits.

Reference: Reuters