Australia’s central bank launches project on digital currency
The aim of the project is to look at the potential use and implications of a wholesale form of central bank digital currency
The Reserve Bank of Australia (RBA) is launching a project to look at the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT).
In a statement, Australia’s central bank said the project will involve the development of a “proof-of-concept for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan”.
The CBDC project will be based on an Ethereum-based DLT platform.
The aim of the project is to explore the implications of a CBDC for “efficiency, risk management and innovation” in wholesale financial market transactions, the bank said.
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The project is expected to be completed around the end of 2020 and the parties intend to publish a report on the project and its main findings during the first half of 2021.
The RBA will be partnering with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on the project.
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