The Reserve Bank of Australia in collaboration with the Digital Finance Cooperative Research Centre (DFCRC) is investigating potential uses for central bank digital currencies (CBDCs) in the nation.
The collaborative project of the Reserve Bank of Australia and DFCRC would concentrate on “new use cases and business models” that might be supported by the issuing of a CBDC, it was announced on Tuesday. The project’s progress will also include evaluations of the technological, legal, and regulatory aspects.
The CBDC will operate in a ring-fenced environment for the duration of the experiment, which will last around a year.
The Bank and the DFCRC will assess the specific use cases that industry stakeholders establish after being invited to do so. Participation in the pilot by the chosen instances will result in a customized report.
In the next months, the Reserve Bank plans to publish the document with more information on the proposal. According to Michele Bullock, the Reserve Bank’s deputy governor:
“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.”
The DFCRC, a $180 million research initiative supported by business partners, academic institutions, and the Australian government, aims to bring together key players in the financial industry, the academic community, and the regulatory community to develop the opportunities that will result from the next financial markets transformation.
The two-year retail CBDC testing trial is scheduled to begin by the end of 2022, according to an announcement made by the Bank of Thailand on Friday.
