Throughout, $A$ denotes a $*$-algebra. We always assume $A$ is representable in the sense that $A$ can be embedded into $B(H)$ for some Hilbert space $H$. The particular embedding is not important, and it is not assumed that the range of this embedding is closed, i.e. $A$ does need not be a $C^*$-algebra.
Let $P(A)$ be the set of projections (self-adjoint idempotents) in $A$. Let $\sim$ denote the Murray-von Neumann equivalence relation on $P(A)$. That is, $e \sim e'$ when there exists $w \in A$ such that $w^*w = e$ and $ww^*=e'$.
Projections $e_1,e_2 \in A$ are called orthogonal if $e_1 e_2=0$. In this case, $e_2 e_1 = 0$ as well and $e_1 + e_2$ is another projection. That is, $P(A)$ is closed under orthogonal sums. The following fact states that addition of Murray-von Neumann equivalence classes is well-defined, whenever orthogonal representations are to be found.
Fact 1: Suppose that $e_1, e_2 \in P(A)$ are two orthogonal projections, and $e_1',e_2'$ are two more orthogonal projections. If $e_1 \sim e_1'$ and $e_2 \sim e_2'$, then $e_1 + e_2 \sim e_1' + e_2'$.
Proof: Indeed, suppose $w_1,w_2 \in A$ have $w_1^*w_1 = e_1$, $w_1w_1^* = e_1'$ and $w_2^*w_2 = e_2, w_2w_2^* = e_2'$. One has $w_1^*w_2= (e_1'w_1)^* e_2'w_2 = w_1^* e_1' e_2' w_2 = 0$ and, similarly, $w_2^*w_1 = 0$. Using the latter two equalities, one sees $(w_1 + w_2)^*(w_1+w_2) = e_1 + e_2$. Similarly, $(w_1+w_2)(w_1+w_2)^* = e_1' + e_2'$ so that $(e_1+e_2) \sim (e_1' +e_2')$.
As a simple corollary, we see that, if $A$ is spacious in the sense that, for each pair of projections $e_1,e_2 \in P(A)$, there exist $e_1',e_2' \in P(A)$ with $e_1 \sim e_1'$, $e_2 \sim e_2'$ such that $e_1'$ and $e_2'$ are orthogonal, then $P(A) / \sim$ is a commutative monoid with respect to orthogonal direct sum.
Even if $A$ is not already spacious, then $M_\infty(A) = \bigcup_{n=1}^\infty M_n(A)$, which also acts faithfully on a Hilbert space, namely $\bigoplus_{n=1}^\infty H$, is spacious. This is follows easily from the fact that, if $e \in P(M_n(A))$, then $w = \left( \begin{smallmatrix} 0 & 0 \\ e & 0 \\ \end{smallmatrix} \right) \in M_{2n}(A)$ has $w^*w = \left( \begin{smallmatrix} e & 0 \\ 0 & 0 \\ \end{smallmatrix} \right)$, $ww^* = \left( \begin{smallmatrix} 0 & 0 \\ 0 & e \\ \end{smallmatrix} \right)$. We remark that:
$A \mapsto M_\infty(A)$ is a functor from representable $*$-algebras and $*$-homomorphisms, to the subcategory of representable $*$-algebras that are spacious.
$A \mapsto P(A) / \sim$ is a functor from spacious, representable $*$-algebras to commutative monoids.
My question is the following:
Question: If $A$ is already spacious so that $P(A)/\sim$ is monoid without passing to matrices, does the corner inclusion $A \to M_\infty(A)$ induce a monoid isomorphism $P(A) / \sim \to P(M_\infty(A)) / \sim$? In other words:
- Is every $e \in P(M_\infty(A))$ Murray-von Neumann equivalent in $M_\infty(A)$ to an $e' \in A \subset M_\infty(A)$?
- If $e,e ' \in A$ are Murray-von Neumann equivalent in $M_\infty(A)$, are they already in $A$?
I had forgotten about this question until Jonas Meyer put a bounty on it. In hindsight, I think I now know how to solve parts of it... I'll write down what I've got and maybe someone can give a complete argument building on it.
I'll address the case $1 \in A$ first since it is somewhat simpler. The argument does not seem to be overly difficult, but it is a bit technical and I don't think I have written it up very well. If somebody would like to edit this post into a better state, please feel free!
The nonunital case, I do not have a good grasp on. I think it may be impossible to complete without some extra assumptions, e.g. that $A$ is a C*-algebra, or at least is closed under some flavor of functional calculus.
The unital case
A couple basic things to realize:
We want to ensure we can find many pairwise-orthogonal isometries (i.e. isometries whose range projections are pairwise-orthogonal). Since $[1]+[1]$ needs to be well-defined, there exist isometries $w_0,w_1 \in A$ such that $e_0 = w_0w_0^*$ and $e_1 = w_1w_1^*$ are orthogonal. Now, for any binary sequence $b = b_1\cdots b_\ell$ of length $\ell$ let's define $w_b = w_{b_1} \cdots w_{b_\ell}$. It's easy to see the $w_b$'s are isometries. One may show they are also pairwise orthogonal, as $b$ ranges over all binary sequences of length $\ell$.
[Note: lurking behind the above argument is a sort of subdivision procedure. We know $A$ contains a copy of $A \oplus A$. But then each of the factors also contains a copy of $A \oplus A$, and so on.]
Now let us consider $M_n(A)$ for some fixed $n$. By the above, we can find pairwise orthogonal isometries $w_1,\ldots,w_n \in A$. The orthogonality implies that $w_i^*w_j = 0$ if $i \neq j$ and $1$ if $i=j$. Thus $$W = \begin{pmatrix} w_1 & w_2 & \cdots & w_n \\ 0 & 0 & \cdots & 0 \\ \vdots & \vdots & \ddots &\vdots \\ 0 & 0 & \cdots & 0 \\ \end{pmatrix} \in M_n(A)$$ is an isometry. Moreover, the range projection of $W$ lies in the upper left corner copy of $A$ in $M_n(A)$. Thus, conjugating by $W$ there is a $*$-isomorphism from $M_n(A)$ onto a sub algebra of the upper left corner copy of $A$ in $M_n(A)$.
Now we can answer the question. Any projection $e \in M_n(A)$ is M-vN equivalent to $WeW^*$ in the upper left corner copy of $A$ in $M_n(A)$. If $e,e'$ in the upper left corner copy of $A$ in $M_n(A)$ are M-vN equivalent via a partial isometry $w \in M_n(A)$, then $WeW^* = w_1 e w_1^*$ and $W e'W^* = w_1 e' w_1^*$ are M-vN equivalent in $A$ via the partial isometry $WwW^* \in A$. Since $e \sim w_1ew_1^*$ in $A$ via $w_1 e$ and $e' \sim w_1 e' w_1^*$ in $A$ via $w_1 e'$, we have $e \sim e'$ in $A$ already.
The Nonunital case
I do not know how to deal with this case. When I attempted it, it seemed to me that the main difficulty was to prove that any projection $$ E = \begin{pmatrix} x_{11} & \cdots & x_{1n} \\ \vdots & \ddots & \vdots \\ x_{n1} & \cdots & x_{nn} \\ \end{pmatrix} \in M_n(A), $$ is dominated by a projection of the form $$ \begin{pmatrix} e & 0 & \cdots & 0 \\ 0 & e & \cdots & 0 \\ \vdots & \vdots & \ddots &\vdots \\ 0 & 0 & \cdots & e \\ \end{pmatrix} $$ where $e$ is a projection in $A$. I think suffices to dominate the restriction of $E$ to the diagonal $$ \begin{pmatrix} x_{11} & 0 & \cdots & 0 \\ 0 & x_{22} & \cdots & 0 \\ \vdots & \vdots & \ddots &\vdots \\ 0 & 0 & \cdots & x_{nn} \\ \end{pmatrix} $$ (something do do with the diagonal map being a "faithful conditional expectation") and the latter should be a positive element with a spectral gap at zero, so that a projection of the form $$ \begin{pmatrix} e_{11} & 0 & \cdots & 0 \\ 0 & e_{22} & \cdots & 0 \\ \vdots & \vdots & \ddots &\vdots \\ 0 & 0 & \cdots & e_{nn} \\ \end{pmatrix} $$ can be found using functional calculus. Then one wants to find a projection dominating $e_1+\ldots+e_n$ which, I think, can also be done using functional calculus.