After years of shaming the cryptocurrency industry, the Bank of England decided to collaborate with MIT on the central bank’s digital currency path. The Bank of England has now become the second institution in the country to collaborate with the MIT on this matter.
BoE joins forces with MIT
In an announcement earlier this week, it was revealed that the two entities had begun their collaboration back in February on whether a CBDC should be developed and launched by the bank.
The Digital Currency Initiative (DCI), Massachusetts Institute of Technology, agreed to a 12-month project to examine the pros and cons of digitizing the pound. The team will examine “potential technical problems, trade-offs and opportunities as well as the risks associated with designing a CBDC system.”
It is important to note, however, that this research does not necessarily mean that the BoE would launch a CBDC.
“This work is primarily focused on exploratory technology research, and is not intended for the development of an operational CBDC. “No decision has been made whether to introduce a CBDC into the UK. This would be a large national infrastructure project.”
Andrew Bailey, the Governor of the Bank of England, has been a vocal critic of the cryptocurrency industry. He claimed that anyone who invests in bitcoin should expect to lose their entire investment. The institution has not yet made a big bet on a CBDC unlike other central banks who have shown a lot of resentment towards BTC.
Bank of Canada Works with MIT
The BoE isn’t the only major central bank to collaborate with the university. CryptoPotato reported this month that the Bank of Canada tapped MIT’s Digital Arm to conduct research about its potential CBDC.
It will take approximately one year to complete the process. Both parties will also decide if digitizing the Canadian dollar is a good move for the Bank of Canada.
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