Reserve Bank of Australia Starts Pilot to Explore CBDC Use Cases

Australia's central bank plans to create a CBDC that will operate in a ring-fenced environment.

AccessTimeIconAug 9, 2022 at 8:51 a.m. UTC
Updated May 11, 2023 at 6:48 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Reserve Bank of Australia (RBA) will develop a "limited-scale" pilot to explore use cases and potential economic benefits of a central bank digital currency (CBDC).

  • Australia's central bank plans to create a CBDC, which will operate in a ring-fenced environment. A ring-fence environment separates a portion of the user's financial assets from the rest, potentially securing one from the other in case of a breach.
  • The project will take about a year to complete, according to an announcement on Tuesday.
  • In 2020, the RBA announced its intention to explore a potential CBDC with the development of a proof-of-concept (POC) for the issuance of a tokenized digital dollar for use by the wholesale market. Attention is now being turned to a potential CBDC for use by households and businesses.
  • While the central banks of almost every developed economy are at least exploring rolling out a CBDC, the jury is somewhat out on the necessity or desire for one in places like Australia, which the RBA acknowledges.
  • "A question that has received less attention to date, especially in countries like Australia that already have relatively modern and well-functioning payment and settlement systems, is the use cases for a CBDC and the potential economic benefits of introducing one," the central bank said.
  • With China's digital currency, eCNY, being fairly well established and having received mainstream extended trials at the Winter Olympic Games in February, central banks elsewhere want to make sure they are not being left behind in the digital currency race.
  • The RBA will publish a paper in the next few months detailing its objectives for the projects and interested industry bodies will be able to participate.
  • AI-Linked Tokens Surge on Nvidia Hype; Nigeria's SEC Cracks Down on Crypto
    01:58
    AI-Linked Tokens Surge on Nvidia Hype; Nigeria's SEC Cracks Down on Crypto
  • Spot Bitcoin ETFs Are Ready for 'Prime Time,' Sen. Cynthia Lummis Says
    00:54
    Spot Bitcoin ETFs Are Ready for 'Prime Time,' Sen. Cynthia Lummis Says
  • Sen. Cynthia Lummis Is 'Optimistic' About Stablecoin Legislation This Year
    15:35
    Sen. Cynthia Lummis Is 'Optimistic' About Stablecoin Legislation This Year
  • Bitcoin Drops Below $39K; Donald Trump Pushes Back on CBDCs
    01:22
    Bitcoin Drops Below $39K; Donald Trump Pushes Back on CBDCs
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.