Reserve bank of Australia unveils proposed CBDC use cases

The Reserve Bank of Australia (RBA)recently stated that it has selected 14 digital currency proposed use cases from a large number of submissions obtained from industry participants.

By Anna B Kiwanuka

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The central bank of Australia, which has been investigating the advantages of central bank digital currency (CBDC), recently disclosed the intended use cases for the digital currency as well as the names of providers who have been asked to take part in the live pilot.

The Reserve Bank of Australia (RBA), the bank, stated in a news release that the identified use cases were picked from a significant number of submissions from industry parties.

In the statement, Brad Jones, an Assistant Governor at the RBA, praises the industry participants’ readiness to interact with authorities. 

Jones stated, “We are delighted with the enthusiastic engagement by the 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.”

Jones also claims that the pilot study and the more extensive investigation will be carried out concurrently to accomplish two goals. 

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.

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

The RBA has also selected use cases for offline payments, corporate bond payments, and money custody. The statement demonstrates that the RBA has selected more than eight vendors and about 14 use cases.

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