The use cases for the CBDC ranged from offline payments to “trusted Web3 commerce” and financial industry participants were invited to undertake a live pilot.
The Reserve Bank of Australia will launch a “live pilot” of the central bank’s digital currency “in the coming months”, according to a joint statement from the Reserve Bank of Australia and the Digital Finance Cooperative Research Centre, an Australian financial research firm.
The RBA said on March 2 that it was working with the DFCRC on research to “explore the potential use and economic benefits of central bank digital currency (CBDC) in Australia.”
The RBA said the first part of the research project involved selecting several financial industry participants to demonstrate a potential use case for a CBDC. The pilot project will begin on March 31 and end in May. 31, and the final report on its results, including an analysis of the various uses developed, which is expected to be released on June 30. Use cases tested include offline payments, tax automation, and CBDC for “trusted Web3 businesses”, with case participants from banks – such as Commonwealth Bank and Australian Bank in New -Zealand (ANZ) – to payment providers such as Mastercard.
Brad Jones, Deputy Governor for the Monetary System at the RBA, said: “The pilot and the large-scale study that will be carried out individually will do two things – it will help to learn from the industry and it will add to the policies of the policymakers understand how CBDC can benefit the Australian economic system.
David Lavecky, the founder and CEO of the blockchain company CANVAS – one of the companies chosen as an arbitrator – told Cointelegraph that they were chosen to explore the potential benefits of using CBDC n ‘the status of foreign exchange (FX) transactions. Laavecky says the foreign exchange and export market is “huge,” with trillions of dollars traded every day. “What’s amazing is that it’s going on an old train this fast.”
He sees CBDCs and digital currencies as able to move money faster and cheaper than these legacy systems while allowing these markets to operate outside normal business hours. Although many people oppose the CBDC from privacy, Lavecky says that this issue will be one of the things discussed, and points out that the project is more focused on investigating privacy cases. can be used in the decision of issuing the appropriate CBDC.
Eli Ben-Sasson, the founder and CEO of the blockchain scaling technology company StarkWare, which provides him zero-knowledge (zk) accumulation engine StarkEx, considers the pilot action “an important step dans le voyage” putting blockchain into the financial culture, adding:
“What we really need is a set of use cases that show people that the new digital money is not wasted hype, but instead can do things that we all need in our lives. The question is how best to do this.”
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