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MIT is adding the Bank of England to its stable of CBDC digital currency research partners

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The Bank of England announced on Friday that it has reached an agreement with the Massachusetts Institute of Technology Media Lab Digital Currency Initiative (DCI) for a joint 12-month research project on Central Bank Digital Currency (CBDC). The Bank called in a statement that the new project is for research purposes only and not for the development of an operational CBDC.

The Bank started Studying CBDC in 2020 and publishing a discussion paper this March, the DCI answered with a discussion on how a CBDC could achieve the goals outlined in the paper. The bank and the treasury headed an exploratory task force on this topic last April. The bank’s latest discussion paper on CBDC was brought out Thursday.

Other voices have also entered the discussion, for example with the House of Lords Economic Affairs Committee, express mixed feelings about a potential digital pound earlier this year, pointing to “benefits in terms of settlement speed and cheaper and faster cross-border payments” and “challenges to financial stability and privacy protection”.

The Bank of England joins the Federal Reserve Bank of Boston and the Bank of Canada as CBDC research partners at the DCI, which is the originator of the OpenCBDC project. The Bank of Canada announced their year-long joint research Efforts last week while the Boston Fed started his collaboration with the DCI in 2020.

However, MIT is not alone in this area. About 60 countries are currently research CBDCs, and there are about 15 pilot projects underway, including China’s native digital yuan. Australia, Malaysia, Singapore and South Africa participated in the Bank for International Settlements The Innovation Center’s Dunbar project. Nigeria and the Bahamas have already adopted their CBDC, and Jamaica is probably still in this quarter. Nigeria’s eNaira was developed by a private fintech company please