Reserve Bank and Cooperative Digital Finance Research Center to Explore Use Cases for CBDC | Press Releases

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The Reserve Bank is collaborating with the Digital Finance Cooperative Research Center (DFCRC) on a research project to explore use cases for a central bank digital currency (CBDC) in Australia.

Considerable research has been undertaken by central banks, including the Reserve Bank, into the feasibility and possible technical design of CBDC, in particular exploring the potential use of new technologies such as distributed ledger technology. One issue that has received less attention to date, particularly in countries like Australia that already have relatively modern and well-functioning payment and settlement systems, is the use cases for a CBDC and the potential economic benefits of its introduction.

The project with the DFCRC will help fill this gap by focusing on innovative use cases and business models that could be supported by issuing a CBDC. The project will also be an opportunity to better understand some of the technological, legal and regulatory considerations associated with a CBDC.

The project, which is expected to last approximately one year, will include the development of a limited-scale CBDC pilot that will operate in an isolated environment for a period of time and aims to involve a CBDC pilot that is an actual claim on the Reserve Bank . Interested industry participants will be invited to develop specific use cases that demonstrate how a CBDC could be used to provide innovative, value-added payment and settlement services to households and businesses. The Bank and DFCRC will select a range of different use cases to participate in the pilot, based on their potential to provide insight into the possible benefits of a CBDC. A report on the results of the project, including an assessment of the different use cases developed, will be published at the end. The results will contribute to ongoing research into the desirability and feasibility of a CBDC in Australia.

The Australian Treasury is participating as a member of the project’s steering committee, as part of its joint work with the Reserve Bank on exploring the viability of a CBDC in Australia.

An article will be published in the coming months that will explain in more detail the objectives and approach of the project and how industry participants can engage.

“This project is an important next step in our research into CBDCs. We look forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia,” said Reserve Bank Deputy Governor Michele Bullock.

Dr. Andreas Furche, CEO of DFCRC, said: “CBDC is no longer about technological feasibility. The key research questions now are what economic benefits a CBDC might enable and how it might be designed to maximize those benefits.

About the Digital Finance Cooperative Research Center (DFCRC)

The DFCRC is a 10-year, $180 million research program funded by industry partners, universities and the Australian government through the Cooperative Research Centers program. DFCRC’s mission is to bring together players from the financial industry, academia and regulatory sectors to develop and exploit the opportunities arising from the coming transformation of financial markets – the digitalization of assets that can be traded and traded directly and online. real time on digital platforms. platforms. The Reserve Bank is an Industry Partner of the DFCRC and uses its involvement in the DFCRC to support work on its strategic focus area to support the evolution of payments, including through research on CBDCs.


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