Reserve Bank of Australia Exploring The Use of Digital Currencies

The Reserve Bank of Australia has announced that it is partnering with ConsenSys Software, a Blockchain technology, Commonwealth Bank (CAB), National Australia Bank (NAB) and Perpetual to explore the impact and effectiveness of central bank digital currencies (CBDC).

The RBA says it plans to develop and test a proof-of-concept (POC) for the issuance of a tokenised version of fiat currency (CBDC) for the funding, settlement and repayment of a tokenised syndicated loan on an Ethereum based platform.

Financial System Assistant Governor for the RBA, Michelle Bullock has commented on the project;

“With this project we are aiming to explore the implications of a CDDC for efficiency, risk management and innovation in wholesale financial market transactions.

While the case for the use of a CBDC in these markets remains an open question, we are pleased to be collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system.”

It is expected that the project will be completed by the end of 2020, with the first report and the main findings of the project being published in the first half of 2021.

 

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