The Bank of England officially entered in partnership with MIT’ DCI to research on CBDCs.
The Central Bank Digital Currency (CBDCs) discussion is continuously increasing among all the Central banks of the world. Around 10 Central Banks are in the final pilot program of CBDCs rollout. Perhaps around 100s of Central Banks are on the path of central bank digital currency adoption but none of them are fully confident to adopt it because at some point CBDCs may negatively impact the traditional financial system. But in this race, China is standing at first rank with its digital Yuan.
On Friday of this week, the Bank of England announced on its website that it will collaboratively work with the Massachusetts Institute of Technology (MIT) Media Lab Digital Currency Initiative (DCI) under a deal.
Under the collaborative approach, experts of both the departments will do research on Central Bank Digital Currency (CBDCs).
However, this research and study on CBDCs will not remain on the development of CBDC but surely it will figure out the hypothetical based analysis only.
This is not the first time when Bank of England did something on CBDC Research. Earlier this Bank reported that it worked with national digital currency, and DCI responded with how the objectives in the paper could be achieved.
In 2021, HM Treasury and Bank of England set up a team to research the CBDC to figure out how the UK can use it and also to analyse the urroundings of CBDC.
These activities by the Bank of England is showing that the UK is highly eager toward the CBDC but opposite of it, the crypto industry has less room to evolve. Right now the majority of the new companies are seeking to get regulatory approval in the UK by FCA but they are not able to because of highly strict rules.