Australia’s central bank launches digital currency pilot

Reserve Bank of Australia says year-long trial will explore “innovative use cases and business models” for currency

Australia’s central bank has unveiled plans to examine the potential economic benefits of introducing a central bank digital currency (CBDC).

The Reserve Bank of Australia (RBA) said in a statement on Tuesday it would carry out a year-long pilot project to explore “innovative use cases and business models” for a CBDC and gain a better understanding of technological, legal and regulatory considerations, Qazet.az reports.

The RBA will partner with the Digital Finance Cooperative Research Centre (DFCRC), a government-backed industry group, for the project, which will invite industry players to develop “specific use cases” that demonstrate how a CBDC could provide innovative payment and settlement services to households and businesses.

The result of the pilot will inform ongoing research into the desirability and feasibility of a CBDC in Australia, the RBA said.

“This project is an important next step in our research on CBDC,” RBA Deputy Governor Michele Bullock said in a statement. “ 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.”

About 100 countries are considering rolling out CBDCs, ​ according to the International Monetary Fund, with a number of jurisdictions including China and the Bahamas already distributing their digital currencies among the public.