(15 August 2022 – Australia) The Reserve Bank of Australia (RBA) is commencing a research project to explore use cases for a central bank digital currency (CBDC) over the next year.
The project encompasses the development of a restricted scale CBDC pilot that will operate in a “ring fenced” environment involving a digital currency that is a real claim on the central bank. Industry participants will be invited to develop specific use cases that demonstrate how a CBDC could be utilised to provide innovative and value-added payment and settlement services to households and businesses.
While the RBA has been actively working on the prospect for introducing a CBDC in wholesale markets, scepticism has been raised about the necessity of a retail/consumer application. The central bank reports that the project will also be an opportunity to further understanding of some of the technological, legal and regulatory considerations associated with a CBDC.
“This project is an important next step in our research on CBDC. We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia” commented RBA Deputy Governor, Michele Bullock.
“Considerable research has been undertaken by reserve banks globally, including the Reserve Bank, into the feasibility and possible technical design of CBDC, in particular exploring the potential use of new technologies such as distributed ledger technology. 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”
