Bank of Canada Works with Multiverse Computing for Crypto Adoption Modeling

The Bank of Canada, the central bank of the country, has revealed a partnership with Multiverse Computing to model out the adoption of cryptocurrency as a method of payment, according to a statement by the company. Multiverse Computing said this is the first central bank to leverage quantum computing to simulate crypto adoption. The project was to such a degree that conventional computers could not be utilized due to the massive number of combinations.

Sam Mugel, CTO at Multiverse Computing, said they are proud to be a partner of the first G7 central bank to model complex networks of crypto using quantum computing:

“The results of the simulation are very intriguing and insightful as stakeholders consider further research in the domain. Thanks to the algorithm we developed together with our partners at the Bank of Canada, we have been able to model a complex system reliably and accurately given the current state of quantum computing capabilities.”

Multiverse Computing said the project explored quantum computing technology as a way to simulate complex economic behaviour. The company said the simulation was able to tackle financial networks as large as 8-10 players, with up to 2^90 possible network configurations.

Maryam Haghighi, Director, Data Science at the Bank of Canada, explained they wanted to test the power of quantum computing in a case that was hard to solve using classical computing:

“This collaboration helped us learn more about how quantum computing can provide new insights into economic problems by carrying out complex simulations on quantum hardware.”

The theoretical study is said to have found that for some industries digital assets would share the payments market with traditional bank transfers and cash-like instruments. The market share for each would depend on how the financial institutions respond to the cryptocurrency adoptions, and on the economic costs associated with such trades.

The Bank of Canada is currently partnering with MIT on the possibility of a Central Bank Digital Currency (CBDC) or digital loonie.

 



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