The Reserve Bank of Australia dives into key research for wholesale CBDC


  • Australia takes a different approach regarding CBDCs by focusing on wholesale use cases.
  • RBA board meeting on monetary policy decision on Tuesday is expected to shed more light on the new development.

The Reserve Bank of Australia has announced a strategic partnership with various parties. The National Australia Bank, Commonwealth Bank, ConsenSys Software, and Perpetual will participate in a project to dig deeper into research on the potential use and the implications of a central bank digital currency (CBDC).

Ethereum blockchain the focus of RBA's research

According to the regulator, the task is already underway, exploring the use of a digital currency in the wholesale space. The research is currently dedicated to the use of distributed ledger technology (DLT), precisely executing it on the Ethereum blockchain.

The idea of wholesale-based CBDC is to support the issuance of a tokenized form of the national currency that can be utilized by participants in the wholesale market. Its development will integrate a proof-of-concept (POC) algorithm ensuring that funding, settlement and payments occur seamlessly.

The POC will also look into the effects of an “‘atomic’ delivery-versus-payment on a DLT platform as well as other automation features of tokenized CBDC and financial assets.” The Assistant Governor (Financial System), Michele Bullock, explained that the new direction is designed to put risk management protocols in place and bring forth innovation in wholesale markets. However, Bullock clarified that:

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.

A Board meeting scheduled on November 3 could shed some light on the matter. Meanwhile, Australia appears to be taking a different approach regarding the growing interest in CBDCs around the world. For now, Ethereum blockchain is at the center of the research, especially with the involvement of ConsenSys.

China’s digital currency is designed to reduce the use of cash in the region. Japan is yet to decide the direction its national digital currency will take, although the central bank said that the people would guide the matter. On the other hand, the United States has not made plans for a CBDC but the Federal Reserve Bank chair, Jerome Powell, recently said that it is focused on getting it right and not being the first.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin: Retraces to around $75,000 after hitting new all-time high

Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.

More Bitcoin News
Ethereum price jump spurs most significant ETF inflows in six weeks

Ethereum price jump spurs most significant ETF inflows in six weeks

​After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.

More Ethereum News
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory

The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.

More Crypto News
SUI hits new all-time high fueled by Trump election win

SUI hits new all-time high fueled by Trump election win

Sui (SUI) edges down on Thursday and trades at around $2.24 after hitting a new all-time high (ATH) of $2.38 earlier in the day, buoyed by the victory of a crypto-friendly candidate, Donald Trump, in the US presidential election.

More SUI News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP