Bank of Canada Collaborates With Multiverse Computing to Build a Unifying Model For Cryptocurrency and Fiat Currency.

Multiverse Computing, a Spanish quantum computing company, has successfully developed a model that unifies cryptocurrency and fiat currency. Partnering with the Bank of Canada, this development is a major milestone in quantum computing applications in the financial sector. Canada has become the first G7 country to utilize quantum computing in cryptocurrency.

In 2019, Multiverse Computing conducted research on predicting financial crashes with a D-Wave Quantum computer, which gained the attention of the Bank of Canada. Today, they’ve worked together with the Bank of Canada to develop a model capable of evaluating over 1 Octillion possible configurations in just 30 minutes. This is a huge milestone for the company and the banking industry.

“We are proud to be a trusted partner of the first G7 central bank to explore the model of complex networks and cryptocurrencies through quantum computing. The simulation results are intriguing and insightful as stakeholders consider further research in the domain. Thanks to the algorithm we developed 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.”

Sam Mugel – CTO at Multiverse Computing

The research work, which is presently a proof of concept combines blockchain data from Stablecoin Tether (USDT) and public data from about 10 financial institutions alongside consultations from experts to get the best possible and most realistic scenario.

The research work will allow financial and non-financial firms to adopt cryptocurrency as a means of payment. However, the cost of converting fiat currency to digital assets may pose a limitation. As seen in some of the modelled scenarios, the adoption of cryptocurrency by non-financial institutions will be slow due to the prior knowledge and cost required to convert fiat to digital assets.

Mugel went ahead to explain what inspired the research work.

“The Canadian economy, in their view—and I hope it’s true—is too stable to have a high likelihood of financial crashes. So basically, they said any financial crash we predicted would probably be wrong,” the computational physicist told Decrypt in an interview. “So they said, ‘Let’s look at something more volatile. Let’s look at crypto trades and predict crypto crashes.”

Sam Mugel – CTO at Multiverse Computing

By bringing together blockchain data from Tether and public data from financial institutions such as the Bank of Canada, the Quantum computing model heralds a new era in financing where digital assets can be exchanged in the same manner as fiat currencies.

“We wanted to test the power of quantum computing on a research case that is hard to solve using classical computing techniques,” “The collaboration helped us learn more about how quantum computing can provide new insights into economic problems by carrying out complex simulations on quantum hardware.”

Maryann Haghighi, the central bank’s director of data science.

Multiverse Computing is a Spain-based quantum computing company that provides software for companies from the financial industry wanting to gain an edge with quantum computing. Its fields of expertise are portfolio optimization problems, risk analysis, and market simulation.

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