1. Focus on Wholesale Model
2. Digital Currency Research
3. Future of Retail CBDC

The Reserve Bank of Australia (RBA) has chosen to focus on the development of a wholesale central bank digital currency (CBDC) due to the potential economic benefits and reduced complexity for the nation's financial system.

Focus on Wholesale Model

RBA Assistant Governor Brad Jones, speaking at the Intersekt Conference on September 18, emphasized the focus on wholesale CBDC as an “evolutionary rather than revolutionary” enhancement to current monetary systems, particularly within systemically important markets.

Digital Currency Research

Jones revealed a three-year research initiative on digital currency, including immediate collaboration with industry stakeholders on CBDC and tokenized commercial bank deposits. The project will explore emerging ledger technologies and innovative concepts such as programmability and atomic settlement to assess their potential benefits for Australia’s financial infrastructure.

Future of Retail CBDC

He noted that many international arguments supporting retail CBDCs are either less applicable to Australia or “uncertain at present, especially when weighed against the challenges they might present.” While the RBA remains open to considering a retail CBDC in the future, Jones stressed that such a move would require strong public policy justification and legislative changes aligned with international standards. According to Jones, the decision to introduce a retail CBDC would ultimately rest with the Australian government. He highlighted the importance of close collaboration with the Treasury and other key government agencies.

This development follows the RBA’s declaration in 2023 that Australia was still “years away” from issuing its own CBDC despite growing global interest. At the time, the Bank stated that it has been exploring potential CBDC benefits since 2021 in collaboration with the Digital Finance Cooperative Research Centre (DFCRC). It, however, claimed that there are significant legal, regulatory, and technical challenges that require further investigation before any issuance can occur.