The University of Cambridge has announced that it is currently working on publishing a report to provide an objective analysis of the impact of cryptocurrencies both economically and environmentally. It will be working with many important partners such as the International Monetary Fund (IMF), the Bank for International Settlements (BIS) and the World Bank (WB).
Cambridge University working on a new report
The prestigious University of Cambridge will begin a large-scale study to assess the use and impact of cryptocurrencies in all their facets, according to an exclusive information from our colleagues at Cointelegraph.
The Cambridge Centre of Alternative Finance (CCAF), a branch of the university specializing in the study of financial channels and instruments parallel to the traditional system, will conduct this research alongside many of the leading lights of international finance. The project will be called the Cambridge Digital Assets Programme (CDAP).
These partners include the International Monetary Fund (IMF) and the Bank for International Settlements (BIS), known as the “central bank of central banks”. Other giants of the banking system will also participate, such as the New York investment bank Goldman Sachs, the payment companies Visa and Mastercard, and the asset management company Invesco.
Then come other public bodies such as the World Bank (WB), the CDC Group, the Foreign and Commonwealth Office (FCO), but also the London Stock Exchange Group, owner of the London Stock Exchange.
The axes of the project
Following on from the university’s previous report in 2017 under the name “Global Cryptocurrency Benchmarking Study”, this new study will also draw on the Cambridge Bitcoin Electricity Consumption Index (CBECI). This is a tool that hypothetically analyzes the energy needed to run the Bitcoin network, which operates with the Proof-of-Work (PoW) consensus.
Initially released in 2019, this index has established itself as a benchmark in studies related to the energy impact of Bitcoin mining and hashrate.
Drawing on many strong partnerships, the new report is expected to focus on analyzing the opportunities and risks associated with the growing adoption of cryptocurrencies, including the environmental implications this of the latter as well as the impact of stablecoins and central bank digital currencies (CBDs).
According to Bryan Zhang, CCAF’s executive director, the analysis stems from a growing demand for robust data on cryptomurrencies:
“The Cambridge Digital Assets Programme we are launching today wants to address the need for clarity [on cryptocurrencies] by providing data-driven insights through collaborative research involving public and private sector stakeholders.”
Also with that in mind, CDAP will “provide managers with the objective analysis and empirical evidence they need to navigate the digital asset industry,” according to Michel Rauchs, the head of the CCAF’s digital assets practice.
