Reserve Bank of Australia working on partnerships aims to research CBDC

The Reserve Bank of Australia announced that it is working on partnerships with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a collaborative project in order to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) by using distributed ledger technology (DLT). It is reported on 02 November 2020.

Basically, The project is going to work on the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that is going to be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform.

The use of POC is to explore the implications of ‘atomic’ delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenised CBDC and financial assets.

With this project we are aiming to explore the implications of a CBDC for efficiency, risk management and innovation in wholesale financial market transactions. While the case for the use of a CBDC in these markets remains an open question, we are pleased to be collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system.

– Michele Bullock, Assistant Governor of Financial System

According to report, it is expected that the project may be completed around the end of 2020 and the parties will also provides a report on the project and its main findings during the first half of 2021.

Recently, The oldest and largest bank of Mangolia will start offering crypto services including custody, remittance, crypto deposits, crypto loans, and crypto-asset management reported on 30 October 2020