Australia Deepens CBDC Research with Industry Pilots

The Reserve Bank of Australia (RBA) is pushing forward with its central bank digital currency (CBDC) research by launching 'Project Acacia'. This initiative involves a series of pilot programs testing the feasibility and functionality of a wholesale CBDC.

Real-World Applications

Project Acacia will explore 19 pilot cases using actual money and assets. An additional five proof-of-concept scenarios will involve simulated transactions. The trials cover a diverse range of assets, including:

• Fixed income
• Private markets
• Trade receivables
• Carbon credits

Proposed settlement assets include CBDCs, stablecoins, bank deposit tokens, and new uses for commercial bank deposits at the RBA.

The project will leverage various platforms like Hedera, Redbelly, and R3 Corda to test the infrastructure. Testing is scheduled for the next six months, with a report due in the first half of next year.

Wholesale Focus

The RBA is specifically focusing on wholesale applications of a CBDC. The central bank has stated that there is no clear economic benefit in pursuing a retail-focused cryptocurrency.

Potential Benefits

According to the RBA, the benefits of a wholesale CBDC could include:

• Reduced counterparty and operational risks
• Increased collateral availability
• Improved transparency and auditability
• Lower costs for institutions and customers

Key Takeaways

• Australia is actively exploring wholesale CBDC applications.
• 'Project Acacia' will test real-world use cases with diverse assets.
• The RBA is focusing on potential benefits for financial institutions and market efficiency.