The Reserve Bank of Australia (RBA) has revealed that they are conducting research on central based digital currency (CBDC) and exploring ways to design and operate the digital currency. RBA is also considering the possibility of more targeted wholesale CBDC.
Tony Richards, Payments Policy head at RBA, has talked about CBDC at the Cryptocurrency and Fintech Conference. He stated, “We will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.”
Reserve Bank of Australia Was Highly Skeptical About CBDC
Just a while ago, it was reported that the Reserve Bank of Australia was highly skeptical about issuing CBDC. Richards has also stated that there is a need for a public policy case for the issuance of CBDC in Australia. He also mentioned that CBDC will be developed on a centralized digital ledger unlike Bitcoin and other cryptocurrencies, which are based on a public blockchain platform.
RBA is currently looking for different factors that can help create a potential CBDC. It will also seek the ways the use the CBDC offline as well or it will be account-based or token-based.
The RBA is Having an Open Mind on CBDC
According to Richards, RBA is also conducting research on the technological and policy implications over CBDC. It will be accessible to a very limited range of financial entities. He mentioned that the bank is having a completely open mind when it comes to CBDC. And will also monitor the development in this particular area. He also indicates that if some jurisdictions are fully implementing the CBDC, then they are definitely looking close to it. This comment has been made in contrast to China as the country is all set to launch theirs.