The Reserve Bank of Australia (RBA) has proposed to launch a three-year applied research program on the future of digital money in the country. Assistant Governor Brad Jones made the statement at the Intersekt Conference in Melbourne.
Program Launch
The Reserve Bank of Australia has announced its plans to launch a three-year research program to study the future of digital money. Assistant Governor Brad Jones made this statement at the Intersekt Conference in Melbourne. The program will focus on wholesale central bank digital currency (CBDC).
Features of Wholesale CBDC
According to an official statement released by the bank, Jones asserted that wholesale CBDC is less challenging than retail CBDC. This enhances monetary arrangements and benefits the economy better. Wholesale CBDC also stabilizes the bank's role in the settlement of wholesale market transactions. Jones stated that three forms of money exist in the country: physical cash, exchange settlement balances, and commercial bank deposits, with the latter two being digital. Although digital money is dominant in the country, CBDC has more weight in terms of privacy, safety, and freedom.
Project 'Project Acacia'
Jones asserted that the research program named 'Project Acacia' will focus on various elements, with the primary aim being to explore wholesale CBDC and tokenized commercial bank deposits. The project will help to understand new ledger arrangements and concepts in tokenized markets. This will further strengthen the Australian financial system and promote the broader economy.
Thus, the new research program by the Reserve Bank of Australia aims to study and develop new forms of digital money, which is expected to have a positive impact on the country's economy and financial system.
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