Bank of England uses MIT to explore CBDC pros and cons

Bank of England uses MIT to explore CBDC pros and

After years of bashing the cryptocurrency industry, the Bank of England has decided to go down the central bank’s digital currency path by partnering with MIT. Thus, the central bank of England has become the second such institution to cooperate with the leading university in this field.

BoE joins forces with MIT

The announcement shared earlier this week informed that the two entities began their partnership on whether the banking institution should develop and launch a CBDC in February this year.

The Massachusetts Institute of Technology’s Digital Currency Initiative (DCI) has agreed on a 12-month research project to determine the pros and cons of digitizing the pound. More specifically, the team will look at “potential technical challenges, tradeoffs, opportunities and risks involved in designing a CBDC system.”

It’s worth noting, though, that this research doesn’t necessarily mean the BoE will launch a CBDC.

“This work is focused on exploratory technology research and is not intended to develop an operational CBDC. No decision has yet been made on the introduction of a CBDC in the UK, which would be a major national infrastructure project.” – reads the statement.

The Bank of England and its governor – Andrew Bailey – were among the most outspoken critics of the crypto industry, arguing that people should be prepared to lose all their money if they invest in bitcoin. However, the institution has not yet wagered much on a CBDC, unlike many other central banks that have shown significant resentment towards BTC.

Bank of Canada partners with MIT

The BoE isn’t the first major central bank to partner with the giant university. CryptoPotato reported earlier this month that the Bank of Canada has also used MIT’s digital arm to research its own potential CBDC.

The process will work the same way it should take a year. Both parties also want to determine whether digitizing the Canadian dollar is an appropriate move for the Bank of Canada.

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