The Reserve Bank of Australia considers the use of a digital currency powered by the Ethereum Blockchain
The Australian central bank is considering the use of a central bank digital currency (CBDC) to be launched on the Ethereum Blockchain. The bank is already working on a project in collaboration with Commonwealth Bank, National Australia Bank, Perpetual, and blockchain technology company ConsenSys to study the use of a CBDC based on the use of decentralized technology (DLT) as part of its ongoing research. .
A press release from the bank on Nov. 2 confirms that the bank plans to develop the CBDC based on a consensus of proof concept (PoC) for use by wholesale market participants for the financing, settlement and repayment of a tokenized syndicated loan. on Ethereum.
"With this project, our goal is to explore the implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions," said the bank's assistant governor (financial system) Michele Bullock. "While the case for using a CBDC in these markets remains an open question, we are pleased to collaborate with industry partners to explore whether there is a future role for a wholesale CBDC in the Australian payments system," he added.
Central banks around the world are starting to pursue the idea of a centrally issued digital currency. One of the countries that has taken the lead is China, which recently started publicly testing its Digital Yuan. According to the PBoC of the People's Bank of China, the measure was necessary to compete with the public digital currencies that are taking the world by storm.
Australia's central bank will use proof of concept (POC) to analyze the implications of 'atomic' delivery versus payment settlement on a DLT platform and other features of a tokenized CBDC and other financial assets. This could make Australia one of the first countries to seriously consider launching a national digital currency, especially ahead of the United States.
The project is expected to be completed by the end of 2020 and a report on the main findings will be published in the first quarter of 2021.