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Australia to Develop Its Own CBDC Through Blockchain

Australia to Develop Its Own CBDC Through Blockchain

The Reserve Bank of Australia (RBA) is now all-ears in what blockchain can bring to the financial system. This time, the creation of its own central bank digital currency (CBDC) is now on the table.

The RBA has partnered with different organizations to make its ambitious project come to life. These organizations include the Commonwealth Bank of Australia, the National Australia Bank, investment advisory firm Perpetual, and blockchain company ConsenSys Software.

The partnership of RBA with the five participating organizations will help it develop its own proof-of-concept (PoC). This will provide an additional security layer in the issuance of a tokenized form of central bank digital currency (CBDC).

The RBA financial system assistant governor Michele Bullock explained:

While the case for the use of a CBDC in these markets remains an open question, we are pleased to be collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system.

Furthermore, the CBDC will benefit Aussies by providing funds for the market participants. On the other hand, CBDC also offers a repayment for the tokenized syndicated loan on an Ethereum based-DLT platform.

The RBA targets the completion of the blockchain project on or before the end of 2020. It aims to release its project’s report in the first half of 2021.

Australia is a country that favors digitalization. In a report, the Australian government has allocated $800 million worth of investment to digital technologies, including blockchain.

A dedicated market analyst focused on the highs and lows of the cryptocurrency market. With a background in Business Administration, he tries to unfold his financial perspective to global readers.