Australia Researches The Application Of CBDC

The Reserve Bank of Australia (RBA) has partnered with the Digital Finance Cooperative Research Center (DFCRC) on CBDC research. The project is directed by The Australian Treasury and is expected to run for a year.

In its August 9 announcement, the RBA made its CBDC feasibility study public. The project is supported by DFCRC. The initial goal of the study was to understand the feasibility and “probable engineering design of CBDCs”.

According to the introduction, the study is expected to take at least a year to complete. The RBA wanted to find out if CBDCs could have disruptive economic benefits for the settlement and settlement system, which current system is said to be “relatively modern and well-functioning”. In addition, the experiments will help the agency implement legislation and regulation related to CBDC.

Following the news, Reserve Bank Australia Deputy Governor Michele Bullock said:

“This project is an important next step in our research on CBDC. We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia.”

In the era of technology 4.0, the trend of digital transformation is favored by many countries. Since Singapore and China race to develop CBDC, the demand for CBDC applications is increasing day by day. According to some data, up to now, there are more than 90 central banks considering CBDC research.

If CBDCs are popular, the demand for fiat to digital currency conversion will increase. This is the development orientation of countries that restrict cash payments. CBDC is also a solution to help the government transparently trace and prevent illegal transactions.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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