To generate knowledge about quantum technologies that are designed to assist in finding solutions to problems that is outside the abilities of classical computing, potentially those involving cryptocurrencies the Bank of Canada is experimenting quantum computing.

Spain-based Multiverse Computing, a quantum software company disclosed that it recently built out a simulative model from scratch in partnership with Canada’s central bank.

“We wanted to test the power of quantum computing on a research case that is hard to solve using classical computing techniques,” said Maryam Haghighi, director of data science at the Bank of Canada, in a press release. “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.”

Quantum computing leverages quantum theory to run complex calculations and problems as well as assess probabilities. The computers can process exponentially more data than traditional computing models.

Multiverse Computing relied on a technology called “quantum annealing,” a quantum-computing method that attempts to determine an optimal solution from a large array of potential solutions.

In this case, the company and the Bank modelled a simulation of cryptocurrency adoption as a means of payment by non-financial companies, encoding every possible combination of outcomes in a ten-person network.

Multiverse’s study ultimately found that for some industries, digital assets would take part in the payments market alongside traditional bank transfers and cash instruments. To the degree each financial institution gets involved in the crypto space and the size of the market share they take on depends on how these institutions respond to crypto adoption and the economic costs of crypto trading.

“The crypto market is extremely volatile and notoriously hard to regulate,” Sam Mugel, the chief technology officer at Multiverse said. “Our technology will allow central banks to predict the effect of regulations.”

The Bank of Canada has been exploring the cryptocurrency space for years, particularly when it comes to the possibility of a central bank digital currency (CBDC).

Source: Financial Post

Image source: Multiverse

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