The Bank of Canada has teamed up with the Massachusetts Institute of Technology on a twelve-month research project on central bank digital currency. 

The project will see the central bank and the MIT Media Lab’s digital currency initiative team experiment with potential technology options to establish how a CBDC could work. 

The Bank of Canada has spent several years working with the country's commercial lenders to explore the construction of a DLT-based CBDC. Last year, it indicated that its work on a future digital loonie has increased because of the Covid-19 outbreak and its impact on currency usage. 

Nevertheless, the bank continues to assert that "no decision has been made" on whether to roll out a CBDC. 

For the MIT team, the endeavor will build on research carried done with the Federal Reserve Bank of Boston. 

This ongoing endeavor, has already produced research revealing a system capable of handling 1.7 million transactions a second, without employing distributed ledger technology.