MIT and the Bank of England teamed up to study your own CBDC emissions.
Bank of England decided to take an interest in CBDCs. He invited MIT to cooperate in this area. Therefore, the central bank of Great Britain has become the second institution to collaborate in this area with an outstanding university.
The two entities confirmed earlier this week that they were working together on the potential development and launch of CBDCs.
The Massachusetts Institute of Technology’s Digital Currency Initiative (DCI) has agreed to conduct a twelve-month study examining the advantages and disadvantages of digitising the pound. More precisely, the team would consider “the technical challenges, trade-offs, opportunities, and hazards inherent in developing a CBDC system.”
It is worth highlighting, however, that this research does not imply that the Bank of England will establish a CBDC.
This work focuses on the exploratory research of the technology and is not intended to develop an operational CBDC. No decision has been made on whether to introduce CBDCs in the UK, which would be a major national infrastructure project.
– the statement reads.
It is worth mentioning that Andrew Bailey, the Governor of the Bank of England, is one of the industry’s most vocal critics. He cautioned that those investing in bitcoin should be prepared to lose all of their money. His institution has not yet made a bet on CBDCs — in contrast to a large number of other central banks, who have likewise demonstrated strong aversion to BTC.
Bank of Canada collaborates with MIT
The Bank of England is not the first major central bank to collaborate with the Massachusetts Institute of Technology. For example, the Bank of Canada is now conducting research on its own prospective CBDCs through a relationship with MIT.
The process is likely to take a year, similar to what happens in the UK. The two sides also intend to decide whether digitizing the Canadian dollar is the right step for the Bank of Canada.
According to the statement, the Canadian central bank has not yet decided whether or not to create a CBDC. However, such a digital asset is likely to be pegged or supported by the Canadian dollar and based on a digital ledger.