The IMF and BIS are among the partners behind the University of Cambridge’s new digital assets programme, aimed at delving deeper into the emerging crypto industry.
The University of Cambridge has created a new research program called the Cambridge Digital Assets Program (CDAP), which seeks to bring banks, government organizations and financial institutions closer to the emerging cryptocurrency industry. cryptocurrencies, , to delve deeper into its many applications and potential use cases.
The International Monetary Fund (IMF) and the Bank for International Settlements (BIS), along with 14 other public and private institutions, are collaborating with the University to create new tools and solutions focused on elucidating the potential benefits, advantages and opportunities offered by this industry, as well as the possible risks. The University of Cambridge explained that it seeks to shed light on the accelerated growth of the digitalization of assets and the creation of value transfer systems based on blockchain.
In a release In a recent report, the university institution noted that through this new program, collaborators will be able to create and access empirical data, tools and knowledge necessary to facilitate public dialogue on the development of the crypto industry. The results of the research and studies carried out through the CDAP program will help in the public, regulatory and environmental debate on cryptocurrencies, as a new asset class that is rapidly growing and being adopted.
The World Bank, Inter-American Development Bank (IDB), Dubai International Financial Centre (DIFC), Foreign, Commonwealth and Development Office (FCDO), British International Investment (formerly CDC Group), London Stock Exchange Group (LSEG), MSCI, Accenture, EY, Fidelity, Mastercard, Visa, Invesco and Goldman Sachs are also part of the University of Cambridge Digital Assets Programme.
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CDAP: Infrastructure, environment and monetary systems
The University of Cambridge’s Digital Assets Programme will focus on three main areas of research, considering the most debated and interesting topics in the crypto industry today.
First, the CDAP will consider the Environmental and ESG implications of digital assets and their associated activitiesThe University of Cambridge noted that the studies to be carried out on the subject will provide a basis and empirical evidence for a balanced and impartial debate on the environmental risks and sustainability of cryptoassets, in order to understand the realities and clarify the myths surrounding this industry.
The CDAP will also study the Distributed Financial Market Infrastructure (dFMI) for Cryptocurrencies, including networks, platforms, applications and services. This area of research will provide a broad and real-world view of the promise of cryptocurrencies to create an open and interoperable financial system, based on the programmability, composability and transparency of the blockchain. The University of Cambridge explained that with the accelerated growth of the crypto industry, it is essential for financial and government institutions to better understand “the extent to which technology-based financial services create new value and reduce certain types of risks”, as well as being able to introduce new ones.
Finally, the Cambridge Digital Assets Programme will analyse the Emerging monetary systems based on crypto, to identify the socio-economic, financial, legal, regulatory and cultural implications of asset digitization and tokenization in payments, as well as in commerce, money management and consumer behavior in general.
Diversity and knowledge sharing
Bryan Zhang, executive director of the Cambridge Centre for Alternative Finance (CCAF), said the Cambridge Digital Assets Programme will help meet the need for greater clarity on the crypto industry by providing data and insights based on collaborative research. Involving stakeholders from both the public and private sectors will promote diversity of views and facilitate the exchange of multidisciplinary knowledge., Zhang said.
On the other hand, Michel Rauchs, CCAF's digital assets leader, noted that the CDAP program will provide decision makers with “the objective analysis and empirical evidence they need to navigate the digital asset maze”For the IMF and the BIS, Bitcoin and cryptocurrencies could threaten the financial stability of the current system.
Cambridge University has been analyzing the crypto and blockchain industry to understand its nature, characteristics, potential and risks. In 2019, it launched its Cambridge Bitcoin Electricity Consumption Index (CBECI), which tracks the energy consumption of the Bitcoin network around the world.
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