Australia’s Central Bank Wraps Up CBDC Pilot Program – Is Issuance On The Horizon? |


Australia’s central bank, the Reserve Bank of Australia (RBA), has completed its pilot program exploring the potential use cases of a central bank digital currency (CBDC).

The research project, carried out in conjunction with the Digital Finance Cooperative Research Centre (DFCRC), involved 16 selected industry participants, including Mastercard, Australian Bond Exchange, and Fame Capital.

How To Get Free Crypto  

This announcement came with a new report, detailing how the central bank and the Digital Finance CRC were able to engage with the financial industry to study the use cases for a CBDC.

Australian CBDC Could Compliment Existing Payment Systems: Report

In a report published on Wednesday, August 23, the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre revealed their findings from the recently concluded pilot program. The document delves into the potential use cases of a digital Australian dollar and how it could potentially improve existing payment structures.

The study found that a central bank-issued digital currency could offer benefits to Australian households and businesses in various aspects. One of these areas includes the facilitation of “smarter” payments, where a tokenized CBDC enables a range of complex payment frameworks not currently supported by existing payment systems.

Other areas highlighted in the 44-page document include support of financial innovation in other asset markets, like traditional debt securities markets; enhancing resilience and inclusion in the broader digital landscape; and the promotion of private digital money innovation.

Coinbase Banner  

Specifically, it was revealed that a central bank-issued digital currency can benefit the use of tokenized bank deposits or asset-backed stablecoins.

“In this role, CBDC could serve a similar function to settlement balances held at the central bank for settling payments made using commercial bank money,” the report read.

Is An Australian CBDC On The Horizon?

In the report, the Reserve Bank of Australia and the Digital Finance CRC mentioned that the pilot program raised some legal, regulatory, technical, and operational issues regarding the use of a digital Australian dollar. According to the central bank, these questions require further consideration as part of future research on CBDC in Australia.

With this, it appears that the launch of a central bank-issued digital currency might take a few more years. While the RBA reiterated that a CBDC has the potential to improve the efficiency of the Australian payments system, it believes that more research is needed.

FreeBitcoin Banner  

Brad Jones, assistant Governor at the RBA, acknowledged in a statement that the study offered valuable insights into how a CBDC could potentially unlock benefits for the Australian financial system. However, he noted that the key findings from the pilot project will only help to shape the next phase of RBA’s research program.

It is worth mentioning that central bank digital currencies continue to gain traction in various countries across the world. In one of the latest developments, the Central Bank of Honduras initiated a pilot study toward the potential launch of its own CBDC.

Crypto Total Market Cap at $1.028 | Source: daily TOTAL chart on TradingView

Featured image from Metro Daily, chart from TradingView

Go to Source
Author: Opeyemi Sule

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.