Australia to Explore CBDC Use Cases in Research Project
- The Reserve Bank of Australia will collaborate with DFCRC, a $180 million research program, to explore use cases and potential benefits of CBDC in Australia.
- The research project will also feature a “limited-scale” CBDC pilot, which will operate in a ring-fenced environment.
The famous Sydney Opera House, Sydney, Australia, November 2015. myphotobank.com.au/Shutterstock
The Reserve Bank of Australia (RBA) will be launching a “limited-scale” research project to explore the use cases and benefits of a central bank digital currency (CBDC), the bank said in a press release on 9 August.
According to the announcement, Australia’s central bank intends to launch a CBDC pilot in collaboration with the Digital Finance Cooperative Research Centre (DFCRC), a $180 million research program. The project will focus on “innovative use cases and business models” that could be supported by a CBDC in a modern and well-functioning payment system, as well as assess the technological, legal, and regulatory considerations associated with a CBDC. The RBA noted in its press release:
“A question that has received less attention to date, especially in countries like Australia that already have relatively modern and well-functioning payment and settlement systems, is the use cases for a CBDC and the potential economic benefits of introducing one.”
The CBDC research project is expected to last about a year, and will feature a “limited-scale” pilot that will take place in a ring-fenced environment, which separates a portion of the user’s assets from the rest for security reasons. A paper will be published in the coming months, detailing the project’s objectives and how industry participants can propose and develop specific use cases.
This is not the first time Australia’s central bank has engaged in CBDC research. Back in March, the RBA partnered with the Bank of International Settlements Innovation Hub to create prototype international settlement platforms using multiple CBDCs alongside other countries.
It is not surprising that more and more central banks around the world have engaged in some form of CBDC research, considering China has already conducted extensive tests of its own eCNY. The People’s Bank of China (PBoC) has already integrated its CBDC with China’s most popular payment service, and has even conducted tests with international users during the Winter Olympic Games in February.
- The head of China’s central bank digital currency institute said the e-CNY has undergone a major upgrade, and should be made available as an option in all retail scenarios.
- The PBOC official noted that platforms can integrate the CBDC in the short term using QR codes, and focus on upgrading their payment tools in the long run.
Office building of the People’s Bank of China. Flickr
- The current governor of Florida, Ron DeSantis, announced he is joining the race for the 47th president of the U.S. during a Twitter Spaces event on Wednesday.
- During his speech DeSantis declared his support for Bitcoin and the wider crypto space, noting that if Joe Biden is re-elected “they’ll probably end up killing it”.
- Planned for 1 April, the CBDC trial will involve real consumers and real transactions, though they will be limited to a certain number of customers and transfers.
- The pilot, however, will not be opened to the general public in its first phase, and will only be opened to customers chosen by the 13 participating local banks.