The Reserve Bank of Australia is further advancing in the race of central bank digital currencies (CBDCs) to discover a CBDC’s use cases within the country. The collaboration will be witnessed between Australia and the Digital Finance Cooperation Research Centre (DFCRC) regarding a relevant research proposal.

Australian Reserve Bank Gets into the likely CBDC Use Cases

As mentioned in a declaration on 9th August, the mutual project of DFCRC, as well as the Reserve Bank, will be centered around the innovative utilities as well as business models assisting in launching a CBDC. The legal, technological, and regulatory aspects will additionally be evaluated in the course of the project. The project’s pilot phase will be prolonged to nearly a year where the CBDC will operate in a ring-fenced atmosphere.

The stakeholders of the industry will be summoned to provide particular use cases and they will then be evaluated by the DFCRC. The chosen cases will take part in the respective pilot, to produce an exclusive report. The Reserve wishes to publish issue the document with additional details regarding the project during the coming few months. The Reserve Bank’s deputy governor, Michele Bullock, stated that the CBDC project has great significance as a further move in their CBDC research.

He added that they are moving ahead to get involved in a large list of industry members to have a better understanding of the likely advantages provided by a CBDC within the jurisdiction of Australia. The DFCRC counts as a research program of up to $180 funded on the behalf of the industry members, the government of Australia as well as the universities

CBDCs Obtain Momentum during Declining Crypto Market

These funding entities are focusing on creating a bonding between the stakeholders operating within the financial industry, regulatory as well as academia fields to offer opportunities to be generated by the impending conversion of financial markets. On 5th August, the Bank of Thailand declared to initiate a pilot project to test retail CBDC spanned over a couple of years. This project would expectedly commence by this year’s denouement.

The RBA declared in 2020 that it will operate on its CBDC by developing a proof-of-concept (POC) to release a digital dollar that would be tokenized and would be utilized within the wholesale market. As the “eCNY” of China has witnessed considerable development and prolonged trials for the mainstream utility in February under the Winter Olympic Games, the central banks across the globe intend to remain within this race.