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The duration of the Reserve Bank of Australia (RBA) pilot project will be for one year. The RBA said it will announce limited-range pilots over the next few months.
Reserve Bank of Australia races to pilot CBDC
In collaboration with the Digital Financial Cooperation Research Center (DFCRC), the aim of the Reserve bank of Australia (RBA) is to explore the use cases and economic benefits of digital currencies by banks. central bank (CBDC).
Yesterday (August 9), according to a press release, the pilot project will focus on “innovative use cases and business models” that could potentially adopt CBDCs. The agency will scrutinize the direction of technology, legislation, and regulation during implementation.
The two sides will cooperate in research for a period of 1 year. Simultaneously, the Australian government will adopt a policy of ring-fencing to reform the operating structure. banks if implementing CBDC. Industry stakeholders were also invited to assist in the development of policy and regulatory frameworks, followed by review and revision by the bank and DFCRC. Detailed limited scope will be announced in the next few months.
Michele Bullock, Deputy Governor of the Reserve Bank, said:
“This project is an important next step in our CBDC research. We look forward to interacting with more industry participants to better understand the potential benefits CBDCs can bring to Australia.”
The Digital Finance Collaborative Research Center (DFCRC) says it is a $180 million research program, with funding from industry partners, universities and the Australian Government. Their goal is to bring together stakeholders in the financial, academia and regulatory sectors to grow, scale, and prepare the country for the next transformation of financial markets. .
Positive change in the world
If successful, Australia will officially join the CBDC ecosystem and join the ranks of countries pursuing similar plans. Nigeria (launched and applied), Central Bank of France (successfully tested for credit markets), Georgia (pilot in 2022), Bank of Mexico (released in 2024), Central Bank of Malaysia (is actively exploring CBDCs), Commercial Bank of Ukraine (tested against the Stellar blockchain).
In addition, in Asia, China is currently the country running the most advanced CBDC project in the world. Several countries in Southeast Asia are also stepping up research and implementation of CBDCs as a number of countries have announced limited-scale pilots.
Created in 2014, the Electronic Yuan (e-CNY) is a digital legal tender (CBDC) and is currently under development by the Central Bank Digital Currency Research Institute. China (PBoC).
By the end of May 2022, the accumulated transactions of e-CNY reached 264 million transactions, with a total volume of 83 billion Yuan (about 12.35 billion USD).
The PBoC said that the e-CNY will continue to be developed and piloted in 2022, but the official release date remains an unsolved mystery.
On the Southeast Asian side, on August 5, the Central Bank of Thailand (BOT) said it would begin the digital currency testing process between the end of this year and mid-2023.
During the test, the central bank’s retail digital currency (retail CBDC) will be used to conduct cash-like transactions, including payments for goods and services. The test application area has about 10,000 users participating. The BOT will evaluate the benefits and risks from the pilot project to come up with relevant policies and improve the design of the coin. Currently, the BOT has no plans to officially issue retail CBDCs.
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