Reserve Bank of Australia explores the potential use of a wholesale CBDC

The Reserve Bank of Australia (RBA) announced on Nov. 2 that it is partnering with Commonwealth Bank, National Australia Bank, Perpetual and ConsenSys, on a collaborative project to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). This is part of ongoing research at the Reserve Bank on wholesale CBDC.

The RBA stated it would be researching the development of a proof-of-concept for “the issuance of a tokenized form of CBDC.” It specifically mentioned wholesale market participants potentially using the digital currency for tokenized syndicated loans on an DLT platform and exploring the implications of delivery-versus-payment security settlements with cross-chain atomic swaps.

Reserve Bank of Australia Assistant Governor Michele Bullock said ‘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.’

The RBA said the project will be finished by the end of the year and it will issue a report in 2021.

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The post Reserve Bank of Australia explores the potential use of a wholesale CBDC appeared first on AZCoin News.

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