The Reserve Bank of Australia (RBA) has announced the launch of the second phase of the Acacia project, aimed at testing the use of stablecoins and central bank digital currencies (CBDCs) in real-world scenarios.
Goals and Directions of Phase Two of the Acacia Project
Phase two of the Acacia project focuses on wholesale finance, where digital currencies could enhance transaction efficiency, reduce settlement risks, and increase transparency. Practical applications will be assessed in areas such as trading tokenized assets, cross-border transactions, and instant settlement systems using blockchain and distributed ledger technology.
Increasing Demand for Cryptocurrency in Australia
Australia is experiencing a surge in cryptocurrency interest, with 31% of adults, or about 6.2 million people, having owned digital assets at some point. Data from Independent Reserve shows this figure has risen by 28% from last year. Meanwhile, government support for this sector is starting to materialize.
Focus on Wholesale CBDC
The Reserve Bank of Australia has confirmed it will not pursue a retail CBDC, instead focusing its resources on developing a wholesale CBDC. This decision is based on research indicating that a retail version would not yield significant public innovation. In contrast, wholesale CBDC provides several advantages for commercial and central banks, including reduced counterparty risks and enhanced liquidity.
The launch of phase two of the Acacia project marks a significant step towards integrating digital currencies into Australia's financial system, aligning with the global trend of increasing interest in cryptocurrencies and innovative financial instruments.
