The Reserve Bank (the central banking institution of Australia) collaborated with the Digital Finance Cooperative Research Centre (DFCRC) to unveil a technical White Paper on its future CBDC.
The organization is expected to complete the pilot version of the financial product by the middle of 2023.
- Australia joined the list of countries, racing to issue a digital form of their national currency.
- According to a recent announcement, the Reserve Bank issued a White Paper called “Australian CBDC Pilot for Digital Finance Innovation,” which explores the use-cases of the upcoming product.
- To launch it, the institution teamed up with the Digital Finance Cooperative Research Centre (DFCRC) on a research project that examined all technological, legal, and regulatory considerations related to the CBDC.
- Additionally, the Reserve Bank enabled industry participants to give their opinion on how the digital dollar would interact with the national monetary network.
- Ordinary participants could also evaluate the product and test its value proposition.
- The trial is expected to end at the beginning of 2023, while results should be announced by the middle of next year.
- In September 2021, the Reserve Bank joined forces with the central banks of Malaysia, Singapore, and South Africa to conduct a cross-border transactions trial using CBDCs.
- The Bank of International Settlement’s Innovation Hub also took part in the project by overseeing the actions of the aforementioned financial institutions.
- Assistant Governor Fraziali Ismail – Executive at the Central Bank of Malaysia – argued that the multi-CBDC shared program “has the potential to leapfrog the legacy payment arrangements and serve as a foundation for a more efficient international settlement platform.”