Australia's Central Bank Announces CBDC Pilot Plans, to Be Completed by Mid-2023

CBDCs are central bank-issued currencies or digitized versions of fiat currencies.

Australia's Central Bank Announces CBDC Pilot Plans, to Be Completed by Mid-2023

Photo Credit: Unsplash/ Amber Weir

The Reserve Bank of Australia has announced plans to identify business models and uses for a CBDC

Highlights
  • The eAUD platform uses a permissioned version of Ethereum
  • The pilot project is already running and will continue till mid 2023
  • The RBA might not release a CBDC despite the pilot

Australia is accelerating its foray into digital currencies, announcing on Monday that by mid-2023 it will be on schedule to unveil its first central bank digital currency (CBDC), known as an 'eAUD'. Back in July, the country initiated a pilot of its first trial of a CBDC using a private version of Ethereum, working in close partnership with the Digital Finance Cooperative Research Center. Australia's central bank has now released a whitepaper in which it mentions that the country's CBDC pilot should be completed by mid-2023.

The aim is to "explore innovative use cases and business models" for CBDCs, the country's whitepaper said highlighting that technology research is not the goal.

The eAUD platform uses a permissioned version of Ethereum named Quorum, developed by Digital Finance CRC and operated by the central bank. However, the use cases which will interface with the eAUD platform can leverage blockchain networks, public or private, or conventional technologies.

Industry participants have been asked to submit any use case ideas for the eAUD, and "a limited number of these use cases will be selected for operation within the CBDC pilot project infrastructure."

Invitations will be required to participate in the trial, and only Australian-registered entities and Australian residents who pass KYC measures will be allowed to take part in the trial and hold eAUD.

"The project is seeking to facilitate ideation and innovation in use cases, and in turn use those results to better understand the case for introducing a CBDC in Australia," the whitepaper said, adding that it was expecting industry participants like financial institutions, fintech companies and established businesses to contribute to the research.

The whitepaper also highlights the fact that use cases have to be legally compliant and participants are expected to consult the Australian Securities and Investments Commission (ASIC) on that regard. It was mentioned that some legal exemptions may be allowed purely for the pilot.

The selected use cases will be announced on December 31 prior to the CBDC pilot that is scheduled to run from January to April 2023.

The whitepaper also makes it known that the pilot doesn't mean the RBA will necessarily release a CBDC.


With the next Apple event due very soon, we dive into all the leaks and rumours surrounding iPhone 14 on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Shomik Sen Bhattacharjee
Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
Adani Group to Invest $100 Billion in Renewable Energy, Data Centres Over Next Decade: All Details
Google Pixel 7, Pixel 7 Pro Specifications Suggest Incremental Upgrade Over Pixel 6
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.