Business

Reserve Bank of Australia Testing Central Bank CBDC Cryptocurrency

August 9, 2022
Bharat Times

This will involve the development of a limited-scale CBDC pilot that will operate in a ring-fenced environment

This will involve the development of a limited-scale CBDC pilot that will operate in a ring-fenced environment

Australia’s central bank said on Tuesday it is launching a one-year research program into Australia’s central bank digital currency (CBDC), focusing on the potential economic benefits it could offer. .

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The Reserve Bank of Australia (RBA) is partnering with the Digital Finance Cooperative Research Center (DFCRC), a government-backed industry group, in the programme.

The project will seek to identify innovative use cases and business models that could be supported by issuing a CBDC, and better understand some of its technical, legal and regulatory considerations.

This will involve the development of a limited-scale CBDC pilot that will operate in a ring-fenced environment and a piloted CBDC that is a de facto claim on the RBA.

Interested industry participants will be invited to develop specific use cases that demonstrate how CBDCs can be used to provide innovative and value-added payment and settlement services to households and businesses.