Cryptocurrency While the future role of CBs and their impact on traditional finance continues to be debated, the Bank of Canada has begun to conduct concrete research.
The future role and adoption rate of cryptocurrencies began to be investigated through quantum computers, which complete the operations that a normal person can do in half an hour.
With this move, the Bank of Canada became the first G7 country to simulate scenarios and consequences for the coexistence of cryptocurrencies and fiat currencies.
Quantum computers used in the simulation can model more than 1 octillion scenarios in 30 minutes.
In the simulation, the blockchain data of the largest stablecoin Tether and information from 10 major financial institutions were combined as data.
Most of the models created showed that non-financial institutions would be slow to adopt cryptocurrencies. As the reason for this, it was noted that there are some obstacles and costs in front of the transformation of fiat money into digital assets.
While the research is still in conceptual dimension, no clear inference has been made yet.
Maryann Haghighi, director of data science at the Bank of Canada, said of their research:
“We wanted to test the power of quantum computing in a research case that was difficult to solve using classical computing techniques. The collaboration has helped us learn more about how it can provide new insights into economic problems by performing complex simulations on quantum hardware.”
Speaking to Decrypt, central bank official Sam Mugel stated that they will continue simulations on the adoption of cryptocurrencies.