CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • Fund
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$57,266.00
  • ethereum
    ETH$2,246.62
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    Home » Crypto News » Reserve Bank of Australia Looks to Tap Blockchain for a CBDC

    Reserve Bank of Australia Looks to Tap Blockchain for a CBDC

    Author: Jordan Lyanchev

    Last Updated Mar 15, 2021 @ 14:25

    The Reserve Bank of Australia is actively examining the merits of launchings its own blockchain-based CBDC, confirmed governor Philip Lowe.

    The rapid growth of the cryptocurrency industry and the COVID-19-induced crisis have changed the mind of Australia’s Reserve Bank on launching its own CBDC. The bank’s governor Philip Lowe recently confirmed that the organization is conducting research and exploring the benefits of releasing such a product.

    RBA to Launch a CBDC?

    During the past several years, multiple banks said they were looking into launching a central bank digital currency to reduce the usage of paper money. One study from the Bank of International Settlement concluded that 80% of central banks had such plans.

    However, the Reserve Bank of Australia wasn’t one of them as researchers decided that there’s no demand from customers.

    Nevertheless, plans change, and a little over a year later, the bank’s governor Philip Lowe confirmed that the entity has set up a research team to explore the benefits.

    “Another example where technology and data are opening up new possibilities is in the area of digital currencies. The RBA is conducting research on the technologies and policy implications of a potential wholesale central bank digital currency.”

    He went further and predicted that banks could rely on a single digital currency to make sizeable transfers instead of completing transactions in each country’s fiat currency and then converting it.

    ADVERTISEMENT

    “This could use distributed ledger technology to support the settlement of transactions in the inter-bank payment system.”

    Lowe outlined that a designated team within the bank is already working on such a concept and added that the digital currency should be able to serve the public and the private sectors.

    RBI Governor Philip Lowe. Source: Herald Sun
    RBI Governor Philip Lowe. Source: Herald Sun

    Tapping Ethereum for the CBDC?

    A few months before Lowe’s confirmation, CryptoPotato reported that the Australian CBDC could see the light of day on the Ethereum blockchain.

    This became possible after a partnership between the RBI, ConsenSys, the financial services company Perpetual, and two other local banks – Commonwealth Bank and National Australia Bank.

    The four parties planned to develop a proof of concept for the issuance of a tokenized form of CBDC used by wholesale market participants for the funding, settlement, and repayment of a tokenized syndicated loan on an Ethereum-based DLT platform.

    The bank’s assistant governor Michele Bullock said at the time that COVID-19 has changed the RBI’s perspective on the matter and vowed to be prepared once the demand arrives.

    SPECIAL OFFER (Sponsored)
    Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to get 50% free bonus on any deposit up to 1 BTC.

    You Might Also Like:

    • China
      China’s Blockchain Attempt BSN to Reportedly Integrate CBDCs This Year
    • england_cover
      Bank of England: Current Cryptocurrencies are Unlikely to Last
    • vietnam_cover
      Vietnamese HDBank To Issue Letters of Credit on the Blockchain
    Tags: Australia Blockchain CBDC
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Jordan Lyanchev
    More posts by this author

    Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

    button
  • bitcoin
    BTC$57,266.00
  • ethereum
    ETH$2,246.62
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    bigomex
    Bitcoin Editorials
    6 Ways to Avoid Losing Your Funds to DeFi Scams in 2021

    6 Ways to Avoid Losing Your Funds to DeFi Scams in 2021

    4 Reasons Altcoin Season 2021 Has Officially Started

    4 Reasons Altcoin Season 2021 Has Officially Started

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    After Tesla: Is Apple Eyeing Bitcoin? What We Could Expect to See Next (Opinion)

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What Is NFT? Non-Fungible Tokens Guide For Dummies

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    What is BitClout? The Latest Crypto Hype – Is It Safe?

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    About
    Advertise on CryptoPotato
    About Us | Contact Us

    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Cannabis Stocks News | Market Analysis
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!