The Reserve Bank of Australia (RBA) announced the launch of the live pilot of the country’s central bank digital currency (CBDC) titled eAUD, “which will take place over the coming months.”
In August last year, the Reserve Bank of Australia and DFCRC studied the potential use cases of a CBDC. As a result, the research project received multiple use case submissions from various industry participants.
The RBA stated, “A range of criteria were considered in selecting the use cases to participate in the pilot, including the potential to provide insights into the possible benefits of a CBDC.”
Australia and New Zealand Banking Group Ltd (ANZ), Mastercard, Monoova, the Australian Bond Exchange, DigiCash, Commonwealth Bank, Canvas Digital, Unizon, Imperium Markets, Fame Capital, etc., are the collaborators of the RBA for the CBDC pilot program.
These industry players will tackle concerns in CBDC use cases such as “Offline Payments, Nature-based Asset Trading, Tokenised FX Settlement, Construction Payments, Tokenised Bills, Corporate Bond Settlement,” etc.
“A report on the findings, including an assessment of the various use cases developed, will be published at the conclusion of the project. These findings will contribute to ongoing research into the desirability and feasibility of a CBDC in Australia,” the DFCRC noted.
Brad Jones, Assistant Governor (Financial System) at the RBA, stated, “It has also been encouraging that the use case providers that have been invited to participate in the pilot span a wide range of entities in the Australian financial system, from smaller fintechs to large financial institutions.”
“The pilot and broader research study that will be conducted in parallel will serve two ends – it will contribute to hands-on learning by industry, and it will add to policy makers’ understanding of how a CBDC could potentially benefit the Australian financial system and economy,” Jones added.
Also Read: Reserve Bank of Australia & DFCRC to Complete CBDC Pilot mid-2023
