The financial institution will partner with the Commonwealth Bank, National Australia Bank. The financial services company Perpetual, and software company ConsenSys on a project to explore the potential use of a wholesale central bank digital currency in the country using “Ethereum-based distributed ledger technology”. According to a Nov. 2 announcement from The Reserve Bank of Australia or RBA.
The RBA stated that it would study the creation of a proof-of-concept for “the issuance of a tokenized form of CBDC”. It specifically mentioned that wholesale market participants could use the digital currency on a DLT platform for tokenized syndicated loans. And then explore the consequences of delivery-to-payment security settlements with cross-chain atomic swaps.
Governer said Project aims to explore CBDC
“With this project we are aiming to explore the implications of a CBDC for efficiency, risk management. And innovation in wholesale financial market transactions,”. Said Reserve Bank of Australia Assistant Governor Michele Bullock.
“While the case for the use of a CBDC in these markets remains an open question, we are pleased to be collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system,” he added.
When it comes to CBDC policy, the move is part of an ongoing about-face for the RBA. On Oct. 14, the Head of Payments Policy at the RBA said that despite the financial institution stating. That there was no strong policy case for issuing one in September, the bank would continue to research CBDCs.
The bank has pointed to the success of the country’s effective, real-time New Payments Platform. As an alternative to issuing a CBDC. And stated that it is willing to provide access to fiat banknotes. “For as long as Australians want to continue using them.”
Moreover, the project will completed said the central bank. And then a report will issued by the end of the year in 2021.