The Reserve Bank of Australia (RBA) has announced that it has launched a one-year trial program for its digital currency (CBDC).
Some countries are adopting existing cryptocurrencies, while others are launching their own digital currencies. El Salvador’s Bitcoin and Iran’s CBDC can be given as examples. The Australian central bank has also launched its pilot project for the digital currency.
Reserve Bank of Australia Establishes Partnership for CBDC
Launching a one-year research program for the digital currency focusing on the potential economic benefits it can bring, Australia is partnering with the Digital Finance Cooperative Research Center (DFCRC), a government-backed industry group, in the program.
The project will seek to identify innovative use-cases and business models that can be supported by the issuance of a CBDC, and to better understand some of the technological, legal and regulatory considerations.
Interested industry participants will be invited to develop specific use cases that demonstrate how a CBDC can be used to provide innovative and value-added payment and settlement services to households and businesses.
RBA Vice President Michele Bullock said in a statement:
“This project is an important step in our CBDC research. We look forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC can bring to Australia.”
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