The Reserve Bank of Australia looking into developing a CBDC

Monday 2 November 2020 14:01 CET | News

The Reserve Bank of Australia (RBA) has announced its intentions of developing a central bank digital currency (CDBC) with the help of new partners.

The financial institution will join the Commonwealth Bank, National Australia Bank, the financial services company Perpetual, and software company ConsenSys. The project aims to explore the potential use of CDBC in the country based on Ethereum distributed ledger technology.

The RBA specifically mentioned wholesale market participants potentially using the digital currency for tokenised syndicated loans on an DLT platform. The purpose of the project is to explore the implications of delivery-versus-payment security settlements with cross-chain atomic swaps.

As alternatives to issuing a CBDC, the bank has pointed to the success of the country’s real-time New Payments Platform. It has also stated it is willing to provide access to fiat banknotes ‘for as long as Australians wish to keep using them’. The central bank said the project will be finished by the end of 2020 and it will issue a report in 2021.

If you are interested to learn more about the topic of CBDC, feel free to check our central bank digital currency series here.

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Keywords: Reserve Bank of Australia, RBA, CBDC, central bank digital currency, Commonwealth Bank, National Australia Bank, Perpetual, ConsenSys, Ehereum, cryptocurrency, banking, New Payments Platform
Categories: DeFi & Crypto & Web3
Countries: Australia
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DeFi & Crypto & Web3