CBDC or Central Bank Digital Currency is becoming an interesting topic for Central Banks. Everyday a new Central Bank start to do research about launching its own CBDC. In the latest news from cryptocurrency world, Bank of Australia collaborates to research CBDC.
A new project for Bank of Australia
The Reserve Bank of Australia announced in Nov. 02 that is doing research in order to find out that if there is a future role for a wholesale CBDC in this country.
They mentioned in the announcement that they are collaborating with Commonwealth Bank, Perpetual, which is financial services company, National Australia Bank and software company ConsenSys. In fact, the aim of the collaboration is to find out the potential use of wholesale CBDC in Australia. It supposed to use an Ethereum-based distributed ledger technology.
The RBA mentioned in its announcement that the project is about to research the development of a proof-of-concept for the issuance of a tokenized form of CBDC. In addition, they are exploring the whole sale market. The aim is to find the participants who uses the digital currency for tokenized syndicated loans on an DLT platform. They are also researching about the execution of delivery-versus-payment security settlements by using cross-chain atomic swaps.
Bank Of Australia Collaborates to research CBDC; looking for new partners
Michele Bullock, the Assistant Governor of Reserve Bank of Australia commented about the project. He stated that the aim of the project is to find out the potential implication of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions. In addition, the Bank of Australia is not certain about the wholesale market. As a result, they are looking for new industry partners to collaborate with them in order to research that if there is any possibility for the future role of CBDC in wholesale market.
Although still there is not clear regulation about CBDC in Australia, the central bank keep moving the project forward. Furthermore, They announced that the project will finish by the end of the 2020 and The report of the project will issue in 2021 as well.