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The study used data from the Tether (USDT) blockchain and public data from 10 large traditional financial institutions. In addition, consultations were held with experts from two major Canadian banks to determine realistic parameters.
Most of the scenarios have shown that the adoption of cryptocurrency by non-financial institutions will be slow as there are many nuances involved in converting fiat to a digital asset. The algorithm was also able to simulate the response of banks by lowering bank transfer fees to compete with the very low cost of cryptocurrency transactions.
“The ability to use quantum computing algorithms to model how fiat and digital currencies can compete for use and adoption is a big step forward,” said a Bank of Canada spokesman.
“We wanted to test the power of quantum computing on something that is difficult to model with classical computational methods,” said Marianne Hagigi, director of data science at the central bank.
“The collaboration has helped us learn more about how quantum computing can bring new insights to economic problems.”
The Bank of Canada first turned to Metaverse Computing in 2019: the company was engaged in forecasting financial crises, and this issue was of interest to the Central Bank.
“The Canadian economy, in their opinion – and I hope this is true – is too stable to collapse. In essence, they said that any financial crash that we predicted would probably not happen, ”said the computational physicist in an interview with Decrypt. “So they said, ‘Let’s look at something more variable. Let’s look at cryptocurrencies and predict a crypto crash.”
Then the focus of Metaverse Computing research shifted to exploring the potential of cryptocurrency.
Doctor Strange, the hero of the Marvel Cinematic Universe, is able to consider 14,000,605 possible outcomes of the battle in just a few seconds and find the one in which the superheroes win.
A quantum computer can also process millions of scenarios at the same time. A non-superhero or regular PC would have to deal with each situation one by one, which would take decades instead of half an hour.
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