Reserve Bank of Australia Outlines Its CBDC Development in Latest Whitepaper

The Reserve Bank’s Latest White Paper Is Its Development Partner Digital Finance Joint Research Center (DFCRC) and title ‘Australian CBDC Pilot for Digital Finance Innovation‘describes the purpose and approach of the project. This includes designing a pilot CBDC that an industry participant will utilize to explore his CBDC use case.

Central banks around the world are increasingly exploring the feasibility and possible technical design of CBDCs, especially the potential use of distributed ledger technology.

Australia, which already has a relatively modern and well-functioning payment and settlement system in place, is now eyeing CBDC use cases and the potential economic benefits of implementing a CBDC.

The Reserve Bank will work with the DFCRC to focus on innovative use cases and business models that could be supported by CBDC issuance, as well as technical, legal and regulatory considerations related to distribution. We are taking the opportunity to further understand some of the matters. 1.

The project, which is expected to take about a year to complete, aims to develop a limited-scale CBDC pilot that will operate in a ring-fenced environment for a period of time and include a pilot CBDC that is a real claim to the Reserve Bank. It is said that

The pilot is expected to involve industry participants in developing specific use cases that demonstrate how CBDC can facilitate value-added payment and settlement services to homes and businesses.

The Australian Treasury is participating as a member of the project’s steering committee as part of a joint effort with the Reserve Bank to explore the viability of a CBDC in Australia.

“This project is an important next step in our research on CBDC,” he said. Michelle BlockDeputy Governor of the Reserve Bank.

We look forward to working with a wide range of industry stakeholders to better understand the benefits that CBDC could bring to Australia, she continues.

Dr. Andreas FurcheDFCRC CEO added:

A major research question now is the economic benefits that CBDCs are capable of and how they can be designed to maximize those benefits.