December 15, 2022

What can quantum computing do for central banks? These CDL partners found out

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Quantum computing enthusiasts often point out how the technology can better solve problems that are already being tackled with classical computing, such as portfolio optimization, says Sam Mugel, the founder and CTO of Multiverse Computing.

But there are only a few examples of problems that are classically hard, and quantum easy, Mugel said. The prediction of certain types of economic behaviours in their full complexity is one of them.

Multiverse was previously working on algorithms for simulating economics with the D-Wave quantum computer, when a connection made at Creative Destruction Lab (CDL) created a new opportunity to explore the potential of hybrid quantum models for the economy.

Multiverse participated in CDL-Toronto’s Quantum stream in 2019/2020. CDL is a nine-month, objectives-based program for massively scalable seed-stage science- and technology-based ventures. CDL also offers a Partners Program, which provides curated opportunities for organizations to engage with CDL’s world-class network of investors, mentors, scientists, economists, professors, entrepreneurs, and leaders, as well as thousands of vetted ventures. 

Canada’s central bank, Bank of Canada, is a participating partner at CDL-Toronto. The Multiverse team met a Bank of Canada technical expert at one of its CDL sessions.

Together, Multiverse and the Bank of Canada have now completed a proof-of-concept project. The partners used hybrid quantum computing to simulate the adoption of cryptocurrency as a method of payment by non-financial firms. The work explored how quantum computing can simulate complex economic behaviour that is otherwise very difficult to simulate.

CDL Team's full article here.