Bank of England and MIT Announce CBDC Project

bank of england and mit to work on cbdc research.o

The United Kingdom’s central bank, together with the Massachusetts Institute of Technology, will examine the implementation of central bank digital currencies (CBDCs).

CBDCs are on the radar of several countries around the world and currently only 9 countries have successfully launched their digital currencies.

However, a few countries have scrapped their CBDC projects, including Senegal and Ecuador. However, larger countries seem to be taking the future of finance more seriously.

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Based on the Bank of England’s official press release, the two institutions will work side by side for an entire year to examine “potential technical challenges, tradeoffs, opportunities and risks” associated with central bank digital currencies.

The central bank will be in contact with MIT Media Lab’s newly launched unit, the Digital Currency Initiative (DCI), and will conduct exploratory, experimental use and initial design of CBDCs.

That said, the Bank of England clarifies that the CBDC investigation is purely for research purposes, stating:

“No decision has been made on the introduction of a CBDC in the UK, which would be a major national infrastructure project. Conducting this type of technical research will help broaden policy thinking around CBDC.”

This will be the second banking institution to partner with MIT for CBDC research. Just a few weeks ago, the Bank of Canada announced its partnership with MIT on the same “twelve months” CBDC research initiative.

by Dom Z. – Crypto Analyst, BitDegree

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