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August 15, 2022
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The Central Bank of Australia will study CBDC –

Australia’s central bank begins research into digital currency. The project will be “Investigated whether wholesale CBDCs will play a role in the Australian payment system in the future.”

Reserve Bank of Australia is partnering to study CBDC

According to announcement on November 2, The Reserve Bank of Australia (RBA) will be working with Commonwealth Bank, National Australia Bank, Perpetual financial services firm and ConsenSys software development firm on a project to investigate the potential use of “Wholesale digital currency of the central bank” in the country. It is known that the latter would be based on “Ethereum distributed ledger technology.”

The RBA said it will investigate “Developing a proof of validity of the concept of issuing a tokenized form of CBDC”. In particular, it was mentioned about wholesale market participants that could potentially use digital currency for tokenized syndicated loans on the DLT platform. It is also about examining the implications “Security of supply settlements in relation to interchain swap payments”.

“As part of this project, we intend to explore the implications of CBDC for efficiency, risk management and innovation in wholesale financial market transactions”

Reserve Bank of Australia deputy governor Michele Bullock told the media.

“While the use of CBDC in these markets remains an open question, we are delighted to be working with industry partners to explore whether there is a future role for wholesale CBDC in the Australian payment system.”

– added.

Australia and CBDC

The move is part of the RBA’s ongoing discussions on CBDC policy. Already on October 14, the head of the payment policy in the RBA said that the bank will continue its research on CBDC, even though the financial institution said earlier that there are no strong political arguments yet to report on such experiments.

As an alternative to issuing CBDCs, the bank cited the success of a well-functioning real-time domestic payment platform and stated that it was prepared to provide access to fiat notes “As long as Australians want to use them.”

The central bank said the project will be completed by the end of the year and will publish a research report in 2021.

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