Reserve Bank of Australia Unveils Proposed CBDC Use Cases

Reserve Bank of Australia Unveils Proposed CBDC Use Cases – The Australian central bank, which has been exploring the benefits of central bank digital digital currency (CBDC), recently disclosed the planned use cases for the digital currency as well as the names of providers asked to participate in the live pilot. 

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The Reserve Bank of Australia (RBA) announced in a press release that the identified use cases were picked from a large number of submissions from industry participants. The statement cites Brad Jones, an assistant governor at the RBA, who praises the industry participants’ readiness to engage regulators. 

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“We are delighted with the enthusiastic engagement by industry in this important research project. It has also been encouraging that the use case providers that have been invited to participate in the pilot span a wide range of entities in the Australian financial system, from smaller fintechs to large financial institutions.”

According to Jones, the pilot as well as the more comprehensive study will be conducted in parallel to serve two ends. The first of these ends is helping the industry gain some “hands-on learning” experience. Bolstering policymakers’ understanding of “how a CBDC could potentially benefit the Australian financial system and economy.”

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According to Dilip Rao, a CBDC program director at the Digital Finance Cooperative Research Centre (DFCRC), the process of “validating use cases” with industry participants and regulators is essential because it will “inform further research into design considerations for a CBDC that could potentially play a role in a tokenized economy.”

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Meanwhile, some of the use cases chosen by the RBA include offline payments, corporate bond payments, and funds custody. As shown by the statement, the RBA has chosen around 14 use cases and more than eight chosen providers.

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