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Research for Implications of CBDC on the Rise in Australia

As of the November 2 announcement of the Reserve Bank of Australia, the country has partnered with the Commonwealth Bank, National Australian Bank, a financial services company, and a software company for exploring the possible implications of the novel ‘digital currencies.’

The country is using Ethereum-based distribution ledger technology and now, the target is researching the wholesale use of central banks digital currency. According to RBAs Assistant Governor, Michele Bullock, the idea is to research the development of proof-of-concept for issuing a tokenised form of digital currency. The bank specified that the participants of the wholesale market as potential users of CBDC for tokenised syndicated loans on a DLT platform.

The Governor also added that the bank is pleased to partner with leaders of the industry for exploring the role of wholesale CBDC in the Australian payment system. The head of payments policy of the Reserve Bank of Australia stated on October 14 that research will continue despite the differences from financial institutions regarding CBDC policies.

The RBAs statement also mentioned that the project will be completed by the end of the year and a report will be issued in 2021.