The Reserve Bank of Australia (RBA) has just announced its partnership with different firms and banks to explore central bank digital currency (CBDC). Commonwealth Bank, National Australia Bank, Perpetual, and ConsenSys software are the partners in the project with RBA. According to the announcement, the partnership has been formed to explore all the use cases and implications associated with the wholesale form of CBDC. Although the partnership with these industry partners is new, RBA had been researching the wholesale CBDC for quite some time. This project is a part of the research only.
RBA Believes This Project Will Work For Development of Proof-of-Concept
According to RBA, the project will basically work for the development of proof-of-concept (POC). Also, how the issuance of tokenized CBDC for the wholesale market will take place using the distributed ledger technology (DLT). As the partnership is focused on exploring the use cases of CBDC for the wholesale market. It will also examine the programmability and automation features related to it.
Michelle Bullock, Assistant Governor at RBA has said:
“We are aiming to explore the implications of a CBDC for efficiency, risk management, and innovation in wholesale financial market transactions.”
Looking for Future Role of CBDC in Australian Market
Along with exploring the use case, it is highly necessary to look into all the implications that are associated with it. This will help to be sure about the issuance of the wholesale CBDC. Also, to prepare the industry for the risk associated with it. Bullock mentions the need for RBA to have formed partnerships with such great industry partners. The partnership is also meant to look at whether the wholesale CBDC is having any future role in the Australian market.
According to the announcement, the project is expected to be completed by the end of 2020. The final report of this project will be issued anytime during the first half of 2021.