Reserve Bank of Australia issues report on CBDC use cases

2023-8-24 03:40

On August 23, the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) unveiled their findings in a report detailing the implications of a central bank digital currency (CBDC).

Notably, this investigation involved the RBA issuing a pilot CBDC to selected industry participants within a secure environment, marking a departure from previous theoretical experiments. This CBDC was not just a concept but a legitimate claim on the central bank, enabling a deep dive into the legal, regulatory, technical, and operational facets of CBDC issuance, thus guiding future policy decisions.

Use cases

The report outlined a multitude of submissions from industry participants, each presenting unique CBDC use cases that may offer substantial benefits to Australian households and businesses.

Among the key themes that emerged in the submissions was the potential of CBDCs to streamline payments. The report found that programmable, tokenized CBDCs could facilitate intricate payment arrangements that conventional systems struggle to support. For instance, leveraging smart contracts could trigger automatic payments using the CBDC whenever predefined conditions are met. This would eliminate costly reconciliation processes and reduce failed transaction risks.

Moreover, the research underscored the CBDC’s potential to spur innovation in financial and other markets. Industry representatives expressed considerable interest in utilizing distributed ledger technology (DLT) platforms for asset tokenization, with the pilot CBDC employed in the ‘atomic’ settlement of transactions. This exploration extended to traditional debt securities markets, which typically experience settlement times measured in days and less liquid assets such as Australian carbon credit units and NSW biodiversity credits.

The CBDC could also catalyze innovation in private digital money by promoting new forms of interoperable, uniform private digital money, such as tokenized bank deposits and high-quality asset-backed stablecoins. CBDCs could provide an alternative to central bank-held settlement balances used in commercial bank transactions, fostering competition in the digital money market.

Lastly, the findings suggested that CBDCs could reinforce resilience and inclusivity in the digital economy. Some submissions indicated that CBDCs could bolster the system’s robustness by offering alternate payment methods, like offline electronic payments, especially during power or internet outages. Such a feature could be particularly beneficial to specific community sectors that may find it difficult to access traditional banking services, including travelers, foreign students, and victims of domestic violence.

The project revealed heightened interest from the industry in the development of tokenized asset markets facilitated by a CBDC, which could serve as a catalyst for private sector innovation, including the development of new forms of privately-issued payment instruments and infrastructure.

However, the exploration of CBDCs has also raised a myriad of questions, spotlighting the need for further understanding of a range of legal, regulatory, technical, and operational issues. For instance, the project demonstrated the need for a deeper analysis of the legal foundation of a CBDC, including the legal grounds for its issuance and legal status. Additionally, the project highlighted potential challenges related to the technical design of CBDCs and their integration with use case applications.

The post Reserve Bank of Australia issues report on CBDC use cases appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Time New Bank (TNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0020147 (-100%)

bank digital reserve cbdc report australia dfcrc

bank digital → Результатов: 126


Bank of England policy makers clash over digital pound design

The team at the Bank of England responsible for designing its digital pound CBDC project has clashed over its core design, according to Bloomberg. Tom Mutton, the director of fintech at the Bank of England (BoE) and head of the digital pound project, said a recent meeting failed to strike an agreement on the fundamental […] The post Bank of England policy makers clash over digital pound design appeared first on CryptoSlate.

2023-6-27 14:49


Фото:

Bank Of Japan Commences The First Phase Of Its Digital Yen Experiments

Japan is the latest country making efforts towards issuing its own central bank digital currency (CBDC). The country, however, is taking a measured approach towards the digital currency project. Bank of Japan — the nation’s central bank — on Monday announced that it is starting the first phase of experiments for its sovereign digital currency. […]

2021-4-6 20:31


Microsoft President on digital currencies: We’re not a bank and we don’t want to become a bank

With Facebook working on its digital currency project Diem, formerly known as Libra, the idea of a private entity issuing currency did not please many financial regulators. Most of them believed that The post Microsoft President on digital currencies: We’re not a bank and we don’t want to become a bank appeared first on AMBCrypto.

2021-3-24 21:00


Bank of Russia Is Studying Pros & Cons of a Digital Ruble; May Start Developing CBDC In 2021

According to Izvestia, a Russian finance news site, the Ministry of Finance and Bank of Russia investigate other nations’ efforts in releasing a central bank digital currency (CBDC). The post, published on Monday, highlights some of Russia's advantages of launching its own digital ruble, including reducing the cost of transactions, more opportunities for cross-border payments, […] The post Bank of Russia Is Studying Pros & Cons of a Digital Ruble; May Start Developing CBDC In 2021 first appeared on BitcoinExchangeGuide.

2020-10-21 20:41