RBA examines CBDC applications in Australia via a research pilot project

RBA examines CBDC applications in Australia via a research pilot project

The Reserve Bank of Australia (RBA) announced on Monday that it was teamed up with the Digital Finance Cooperative Research Center (DFCRC) in order to start using applications for a digital dollar issued by a private bank.

Both parties will begin a one -year research project that includes the development of a CBDC "limited scope" that is operated in a forced sandpit, so A Awarding .

While extensive studies on the realizability of the digital Ledger technology in the country were carried out, the RBA and the DFCRC said that their project would continue to close knowledge gaps by examining the potential economic advantages of technology.

Australia's digital-dollar project will join for a growing list of other countries that research the technology in the pilot phase, including France, China, Canada, South Africa and Ghana.

DFCRC is a 10-year research program of $ 180 million, which is financed by the Australian government, industrial partners and universities through the country Program of the cooperative research centers .

The project, which will examine both business models and applications, will also be an opportunity to better understand some of the technological, legal and regulatory considerations in connection with an Australian digital dollar, the two said.

A specific start date for the project was not mentioned. A spokesman for the bank and the DFCRC did not immediately respond to inquiries about comments.

These interested industry participants are invited to develop specific applications that show how a CBDC could give payment and processing services for both households and for companies, according to the explanation.

As part of the process, the central bank and the DFCRC are selected from a number of these applications to take part in the pilot project, the two said.

The knowledge of the project on the feasibility and evaluation of various developed applications should be summarized in a report that will be published after the end of the year.

A separate report will be published in the "next few months", in which the goals and approach of the project are described in more detail and contain further information about how the industry participants can get involved, the two said.

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The contribution RBA to Explore CBDC Use Cases in Australia via Research Pilot is not a financial advice.