Australian CBDC may be useful for payments, tokenization: Central bank

Australia's cardinal slope has completed it's aviator of a cardinal slope integer currency (CBDC) exploring usage cases for a imaginable e-AUD, uncovering its utile successful 4 main areas including enabling analyzable payments and plus tokenization.

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) unveiled their findings successful a 44-page Aug. 23 report that besides elaborate a fig of cases wherever a CBDC wasn't exclusively required to execute the stated usage case.

The aviator programme revealed 4 superior areas which could beryllium improved by a CBDC including the enablement of "smarter" payments wherever a tokenized CBDC enabled a scope of analyzable outgo arrangements that were not presently supported by existing outgo systems.

We’ve released a study with the Digital Finance CRC @DigiFinanceCRC contiguous connected the findings from an Australian cardinal slope integer currency pilot.https://t.co/bTT84yBp02#RBA #CBDC #Payments #DigitalPayments #Blockchain #FinTech pic.twitter.com/WXfe7lchHj

— Reserve Bank of Australia (@RBAInfo) August 23, 2023

Additionally, the study elaborate that a CBDC whitethorn enactment fiscal innovation successful areas specified arsenic indebtedness securities markets, could beforehand innovation successful emerging backstage integer wealth sectors and heighten resilience and inclusion wrong the wider integer economy. 

The aviator recovered a CBDC could beryllium utile successful 4 main areas, including for immoderate payments and plus tokenization. Source: RBA

A wide scope of submissions from the 16 firms that participated successful the aviator programme highlighted the imaginable benefits of a CBDC successful allowing for "atomic settlements" — a transaction colony that's some simultaneous and instant.

Programmability was besides mentioned arsenic an betterment a CBDC could connection arsenic it could "improve ratio and trim hazard successful a scope of analyzable concern processes."

Related: CBDCs aren’t astir solving today’s problems — Australia’s CBDC lead

The CBDC aviator programme was structured arsenic a existent ineligible assertion connected the RBA alternatively than a proof-of-concept which caused uncertainty implicit its ineligible presumption and regulatory attraction with participants.

"Some participants were uncertain if they were providing custody services oregon dealing successful a regulated fiscal merchandise due to the fact that of holding oregon dealing successful the aviator CBDC," the study said. "These issues would ideally beryllium anticipated and resolved successful immoderate ineligible and regulatory reforms that travel the issuance of a CBDC."

While the study drew attraction to wherever a CBDC whitethorn beryllium useful, it conceded galore benefits could beryllium achieved successful different ways including utilizing privately-issued tokenized slope deposits oregon asset-backed stablecoins.

"It was not wide that CBDC was exclusively required to execute the desired economical outcomes."

Overall, the study said portion the instauration of a CBDC could summation ratio and resilience successful immoderate areas of the Australian payments ecosystem, much probe is required to afloat soma retired the imaginable benefits. 

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