Aug 23, 2023

Australia's central bank announced that the country will not likely make a decision on a central bank digital currency (CBDC) for some years due to several unresolved issues that surfaced at the end of the pilot project.

Video transcript

Australia is putting its CBD C plans on ice. The country's central bank noted in a new report that any decision on a central bank, digital currency is likely some years away. Amato you've been following this story closely. This comes after a one year pilot program in the country. Um Tell us about what's happening here. Yeah, I mean, you have to kind of just look at this in a few ways. The first part is that Australia has been reasonably transparent about its CBD C project. The second is that when last year, around the same time in August, the Reserve Bank of Australia, the Central Bank of the Nation and this entity called the Digital Finance Cooperative Research Center, which is kind of made up of different stakeholders and institutions, both private and public. Uh They started this research project, everyone thought well, Australia is also joined this bandwagon that has seen more than 100 and 30 countries according to the Atlantic Council and its CBD C tracker that start researching and more than 60 have gone into advanced stages of doing this. So at that time, when, when this had begun, everyone was thinking, well, Australia is also coming on. And then when they come out with this report, one year later, they say, wait, hold on. The ambiguity is a bit shocking because they say some years it might take for the CBD C to come down. They have given legitimate answers that perhaps several projects across the world, several bilateral mo us that have been signed have also kind of reflected upon. But given some countries China India have have gone ahead and already started experimenting it at the retail level. Uh You know, it's on the ground. People are using it, retailers are using it. Ottawa are using it. Um You know, it's, it's a bit surprising that Australia has so far put a stop on it. Yeah, when I read the story, I kind of focused on the word, likely it sounds like they've given themselves space, likely some years away could mean really anything. So it'll be interesting to see um how Australia progresses on CBD C's Aage. I know that they pointed to um the need for further research on a range of legal regulatory, technical and operational issues. And it makes me just wonder if they're going to sit back and take a look at some of the other pilot projects that are going on around the world, look at what other countries are doing and then maybe, maybe get back in the rain. No, they actually said that in the report that they would be doing that because some of the other, let's say sovereign nations, if not Eurozone or the bank for international settlement might have an answer to those questions that Australia is struggling with.

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 to register and buy your pass now.