PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Could MIT’s Open Source CBDC Code Enact Closed Loop Payments?

By Tim Sloane
February 4, 2022
in Analysts Coverage, Digital Assets & Crypto, Digital Currency
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Could MIT's Open Source CBDC Code Enact Closed Loop Payments?, CBDCs bank run risks

Could MIT's Open Source CBDC Code Enact Closed Loop Payments?

The CBDC code was released just yesterday by MIT and the Boston Fed, so it is too early to say what aspects of this open source code can be re-used or re-purposed for other private initiatives, but it is likely to be a treasure trove. I look forward to conducting that research! 

Back in 2014 I wrote a blog titled “Bitcoin: The Next Gen, Closed-Loop Gift Card Platform?” that suggested a closed loop private implementation of bitcoin would make an excellent management platform for a closed loop gift card program. This CBDC code is likely more aligned for that task, in that it has already eliminated the public servers (I assume):

“Thursday’s publication, which includes OpenCBDC and a research paper, explain that the Boston Fed was able to develop “a core processing engine” for a general purpose CBDC that could support nearly two million transactions per second with high-speed settlement finality.

Project Hamilton, as the research effort was known, is now public for any contributors.

In a statement, Cunha said the research created a “scalable CBDC research model” that can help developers better understand “these technologies and the choices that should be considered when designing a CBDC.”

According to the white paper, developing OpenCDBC was only the first phase of the project. Phase two will test the different designs and features not included in phase one, as well as assess what, if any, trade-offs there might be with different sets of features.

Privacy and interoperability are two of the issues to be analyzed in phase two.”

Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BitcoinCBDCCentral Bank Digital CurrencyClosed LoopClosed-LoopDigital CurrencyFederal ReserveGift CardGift CardsMITOpen Source

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    privacy open banking

    As Open Banking Fuels Interconnectivity, Privacy Matters More

    April 8, 2026

    ACH Is Thriving, and Banks Are Struggling to Keep Pace

    April 7, 2026
    stablecoins, Klarna

    How Stablecoins Emerged as a Key Element of Cross-Border Payments

    April 6, 2026
    Cross-Border Payments

    How the U.S. Built Its Faster Payments Ecosystem

    April 3, 2026
    Young Latin woman applying powder on her face for beauty blog. Smiling woman sitting at table in cosy room holding powder box and brush looking at phone camera recording video. Make up and cosmetics blogging concept

    TikTok Aspires to Fintech Status with Payments, Credit Bids in Brazil

    April 2, 2026
    small business credit card

    What Banks Get Wrong About Small Business Credit Cards

    April 1, 2026
    embedded payments

    Embedding Payments for Growth: How ISVs Can Scale Through Vertical Focus and Partnerships

    March 31, 2026
    ACH fraud monitoring

    From a Checkbox to a Differentiator: Redefining ACH Fraud Monitoring

    March 30, 2026

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2026 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result