The Bank Of England Has Joined The CBDC Research Effort Alongside MIT
According to a statement on the Bank of England’s website, the bank has agreed to collaborate on Central Bank Digital Currency (CBDC ) research with the Massachusetts Institute of Technology (MIT) Media Lab Digital Currency Initiative (DCI) (CBDC).
This isn’t the first time the bank has conducted a CBDC research project. The bank earlier released a report on the workings of a national digital currency, to which DCI reacted with suggestions for how the paper’s goals may be met.
Last year, the HM Treasury and the bank formed a committee to look into CBDC, analyze the challenges around it, and come up with ways for the UK to employ it.
Early this year, the UK’s Economic Affairs Committee published a report on the significance of CBDCs.
The study expressed the Committee’s views on the UK’s need for a CBDC, suggesting that while a national digital currency may have its own benefits, it should be carefully studied if it is necessary.
The Growing Popularity of CBDC Projects ( Bank Of England )
While the Bank of England may be only interested in examining the feasibility of CBDCs, countries such as Australia, Malaysia, China, South Africa, Singapore, Nigeria, and the Bahamas have made significant progress in their projects, with some of them having already launched a national digital asset.
The DCI has teamed with Boston’s Federal Reserve Bank and Canada’s National Bank on its OpenCBDC project, in addition to the English bank.
According to a news release from The Bank of Canada, the bank has formed a cooperation with MIT to examine CBDCs. The “Hamilton Project,” which began in 2020 in Boston, is the name of the partnership.
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