George Osborne, the Chancellor of the Exchequer and Second Lord of the Treasury in the United Kingdom, has commissioned the Treasury to launch a program that will scrutinize the potential risks and benefits of digital currencies such as Bitcoin.

The result of this research will be published this fall, and will be used to determine how Britain can make a new regulatory framework for cryptocurrencies.

“It’s only by harnessing innovations in finance, alongside our existing world class knowledge and skills in financial services, that we’ll ensure Britain’s financial sector continues to meet the diverse needs of businesses and consumers, here and around the globe, and create the jobs and growth we all want to see in the future,” Osborne said at the launch of Innovate Finance, a new industry body established to promote the interests of the UK’s rapidly growing fintech sector.

“Key to the government’s long term economic plan is cementing Britain’s position as the centre of global finance,” Osborne added.

Osborne acknowledged the risks involved in using cryptocurrencies, and exploring these will be a key focus of the program. The Chancellor wants to make sure that Bitcoin will be beneficial for both the UK’s economy and its people.

To show Osborne’s support for cryptocurrencies, he purchased an undisclosed amount of Bitcoins using a Robocoin ATM operated by Cointrader.net.  The news could be an important step in the political and regulatory acceptance of Bitcoin, especially if the research program yields positive results. It could put London, touted as the biggest financial center in Europe, at the center of the cryptocurrency revolution and possibly even lead to it becoming the Bitcoin capital of the world.

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