RBA exploring possibilities of Australian CBDC

• Australian CBDC based on Ethereum under study
• Australian CBDC still an question in financial market

Australian financial institutions gearing up to study the feasibilities of implementing digital currency through Distributed Ledger Technology (DLT) based on cryptocurrency “Ethereum.” 

Reserve Bank of Australia (RBA), in collaboration with National Australia Bank (NBA), is setting up a project to understand the perspective of a comprehensive Australian central bank digital currency (CBDC). The project is also partnered with Sydney based finance expert “Perpetual” and Brooklyn based software firm “ConsenSys.” 

Through the collab, RBA is analyzing the development and implementation of CBDC tokens and its potential in the Australian financial market. Furthermore, analyzing the role of token-based loans on the DLT interface, used by wholesale market partakers, and investigating the effects of cross-chain atomic swaps on a delivery versus payment safety agreements.

RBA official on Australian CBDC

Michele Bullock, Assistant Governor of Reserve Bank of Australia, stated that with this collaboration, the firm aims to dissect the role of CBDC across several factors like effectiveness, innovation, and risk management in financial transactions.

Adding that the practical implementation of CBDC tokens in the Australian financial market is still unknown, the project has teamed up with industry experts to explore and predict Australian financial systems’ future possibilities in the rapidly growing cryptocurrency era.

With no robust policy insight, RBA is optimistically continuing its exploration of the potential market niche said the head of payments police on the 14th of October, 2020.

RBA further spoke about the new real-time payments interface’s immense success, increasing the efficiency mark drastically, and mentioned a willingness to increase fiat-based notes’ accessibility as per the Australian public’s demands.

The collaborative Australian CBDC project intends to wind up by year-end, and a report is expected anytime in 2021, providing more details on the future of CBDC in Australia.