- Australian CBDC will be used for e-commerce and government bills.
The concept of CBDC became popular after the increased user base of cryptocurrencies. Some countries have already launched their CBDCs, but some are still working on launching Central bank Digital Currency.
The Australian CBDC has received more than 140 plus use case proposals from the finance industry; the Reserve Bank of Australia believes that it will replace the Australian dollar, ultimately avoiding commercial banks fully.
The Reserve Bank of Australia released its speech on December 5, 2022, which is to be delivered by Assistant Governor Brad Jones in the central bank conference, which is to be held on December 8 and December 9 as per the local time of Australia in this event the governor noted the effects of CBDC on the Australian economy.
Jones said that the Reserve Bank of Australia is surprised by the interest shown by the finance industry in Central Bank Digital Currency. The interest is constantly rising after the launch of the white paper on August 9, 2022.
As per data, more than 80 financial entities have proposed use cases covering many industries like e-commerce, offline and government payments.
The developing team of the pilot “eAUD” program is functioning on which of the suggested use cases in its pilot phase/trial phase as early as next year and is likely to publish a report on the project in almost mid-2023.
The governor also discussed the possible risk associated with an Australian CBDC. He pointed to liquidity and other issues the bank could face if a CBDC becomes the preferred source of holdings.
The institution collaborated with the Digital Finance Cooperative Research Centre (DFCRC) on a study investigating all technological, legal, and regulatory aspects of the CBDC to launch it.
In addition, the Reserve Bank made it possible for stakeholders in the industry to voice their opinions regarding how the digital dollar would interact with the national monetary network.
The product and its value proposition could also be evaluated and tested by regular participants.
The institution collaborated with the Digital Finance Cooperative Research Centre (DFCRC) on a study investigating all technological, legal, and regulatory aspects of the CBDC to launch it.
In addition, the Reserve Bank made it possible for stakeholders in the industry to voice their opinions regarding how the digital dollar would interact with the national monetary network.
The product and its value proposition could also be evaluated and tested by regular participants.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing
Source: https://www.thecoinrepublic.com/2022/12/08/rba-concerns-over-impact-on-banks-after-aussie-cbdc-rollout/