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Australian central-bank looking into the possibility of its own CBDC

Australian central-bank looking into the possibility of its own CBDC

Quick take

1 minute read

  • The central bank in Australia is looking into the potential of a centralised digital currency (CBDC). 
  • If this project was to go ahead, it would be launched on the ethereum blockchain with the financial institution already working on a project in collaboration with the Commonwealth bank, national Australia bank, Perpetua and the blockchain technology firm known as ConsenSys. 

The central bank in Australia is looking into the potential of a centralised digital currency (CBDC). If this project was to go ahead, it would be launched on the ethereum blockchain with the financial institution already working on a project in collaboration with the Commonwealth bank, national Australia bank, Perpetua and the blockchain technology firm known as ConsenSys. The reason for such a thorough work being done in the matter is to look into the use case of a CBDC based on DLT (a decentralised technology).

According to a press release from the institution that was released earlier this week on the 2nd of November, it confirms that the bank is planning to develop the Central bank digital currency based on a proof of concept consensus for use by wholesale market participants for the funding and settlement.

The assistant governor of the institution, Michele Bullock has said:

“With this project we are aiming to explore the implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions. While 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.”

All over the world, central banks are looking into the idea of a central issued digital currency. One of the many nations that have taken the lead in this area is China which has recently started its public test on a digital yuan. The People’s Bank of China even recently said that the move became necessary in order to compete with the public cryptocurrencies which are growing on a daily basis all around the world.

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© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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