In a recent update, the Reserve Bank of Australia (RBA)and the Digital Finance Cooperative Research Centre (DFCRC) have successfully concluded their CBDC research project. The endeavor has revealed several potential applications for the Digital Australian dollar.
As of the statement made on August 23rd, RBA and DFCRC disclosed their discoveries through a comprehensive 44-page report. This document intricately outlines various scenarios where the exclusive need for a CBDC was not deemed necessary to fulfill the intended use case.
Following the successful execution of a CBDC use case pilot, the outcome has illuminated four key domains that could experience enhancement through a CBDC. One notable facet is the facilitation of “smarter” payments, where a tokenized CBDC has the potential to introduce a variety of intricate payment structures that aren’t presently accommodated by the current payment systems.
The report’s insights might resonate with crypto enthusiasts, given that it also explores how a CBDC could foster financial innovation in domains like debt securities markets. Furthermore, it could stimulate creativity within emerging sectors of private digital currencies, while bolstering both resilience and inclusivity across the broader digital economy.
Brad Jones, the Assistant Governor (Financial System) at the RBA, shared that “The project yielded valuable insights into how a CBDC, alongside other innovations in digital money, could potentially unlock benefits for the Australian financial system and the wider economy.”
A wide array of submissions was collected from the 16 firms participating in the pilot program, and their inputs underlined the advantages of a CBDC in enabling “atomic settlements.”
Additionally, these submissions emphasized the potential for programmability to enhance efficiency and mitigate risk across various intricate business procedures.
Furthermore, the report illuminated a noteworthy point – it revealed that “Some participants were uncertain if they were providing custody services or dealing in a regulated financial product because of holding or dealing in the pilot CBDC.”