Bank Of England And Massachusetts Institute Of Technology Joint Central Bank Digital Currency Collaboration

26th March 2022

Money is going to change so the arguments of what currency Scotland uses in future may not matter any more. A digital currency along with, blockchain, bitcoin and others may make traditional cash the past sooner than expected.

The banks are already indicating the want rid of physical cash whilst a rearguard action is being fought o save cash. Cash has been getting used less and less already with online shopping - bank and credit cards are already digital so much more looks likely.

The next stages are being produced and this announcement by the Bank of England is just another step.

In February 2022, the Bank of England and the Massachusetts Institute of Technology (MIT) agreed to collaborate on a twelve-month research project on Central Bank Digital Currency (CBDC).

The Bank will partner with the MIT Media Lab's Digital Currency Initiative (DCI) team to explore potential technical challenges, trade-offs, opportunities and risks involved in designing a CBDC system.

The collaboration forms part of the Bank's wider ‘research and exploration’ into CBDC, and will be focused on exploration and experimentation of potential technology approaches.

This work is focused on exploratory technology research and is not intended to develop an operational CBDC. No decision has been made on whether to introduce a CBDC in the UK, which would be a major national infrastructure project. Undertaking this type of technical research will help inform wider policy thinking around CBDC.

The Bank will provide an update on the findings and outcomes at the end of this period of research.