Australia to Explore Case for Central Bank Digital Currency




  • In Business
  • 2022-08-08 23:00:00Z
  • By Bloomberg

(Bloomberg) -- Australia's top economic agencies are collaborating on a project to review the case for a central bank digital currency in the country.

Most Read from Bloomberg

  • China Seizes on Pelosi Visit to Set 'New Normal' for Taiwan

  • S&P 500 Finishes Lower After Wiping Out 1% Rally: Markets Wrap

  • Winners and Losers in Democrats' Signature Tax and Energy Bill

  • San Francisco 'Froth is Gone' as Wealth Fades, Housing Slumps

The Reserve Bank of Australia, Treasury and others will oversee the research effort designed to explore the potential economic benefits of introducing such a currency in Australia, the RBA said in a statement Tuesday. The project is expected to run for about a year.

Central banks worldwide are acting swiftly to ensure they don't fall behind as money edges toward its biggest reinvention in centuries with alternative concepts like cryptocurrencies taking hold. That new technology, as well as events like the coronavirus pandemic, are among forces pushing consumers to go cashless.

A paper will be published in the next few months that will explain the objectives and approach of the project in more detail, the RBA said.

Deputy Governor Michele Bullock said the work "is an important next step in our research on CBDC. We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia."

The central bank reiterated the research comes in the context of Australia already having "relatively modern and well-functioning payment and settlement systems."

The RBA is collaborating with the Digital Finance Cooperative Research Centre in the project, while Treasury is participating as a member of the steering committee. The work will involve development of a "limited-scale pilot that will operate in a ringfenced environment for a period of time."

Interested industry participants will be invited to develop specific use cases that demonstrate how the digital currency could be used to provide innovative and value-added payment and settlement services to households and businesses, the RBA added.

A report on the findings, including an assessment of the various use cases developed, will be published at the conclusion.

The Digital Finance Cooperative Research Centre is a 10-year, A$180 million ($126 million) research program funded by industry, universities and the Australian government.

Most Read from Bloomberg Businessweek

  • Amazon's Roomba Deal Is Really About Mapping Your Home

  • Facebook Is Still Making Billions as Zuckerberg Hits the Panic Button

  • A Very Dangerous Place to Be Pregnant Is Getting Even Scarier

  • The Rise of the LinkedIn B2B Influencer

  • Stagflation Puts Stamp on Earnings of US Consumer Giants

©2022 Bloomberg L.P.

COMMENTS

More Related News

CVS Is in Exclusive Talks to Buy Cano Health
CVS Is in Exclusive Talks to Buy Cano Health

(Bloomberg) -- CVS Health Corp. is in exclusive talks to buy Cano Health Inc., the health-care provider backed by billionaire Barry Sternlicht, according to ...

White House Adds New Restrictions on Chip Exports to China
White House Adds New Restrictions on Chip Exports to China

(Bloomberg) -- The Biden administration announced new restrictions on China's access to US semiconductor technology, adding measures aimed at stopping...

Croatia Eager to Join EU
Croatia Eager to Join EU's Visa-Free Schengen Zone on Jan. 1
  • World
  • 2022-10-07 13:39:01Z

(Bloomberg) -- Croatia expects to clear last formal hurdles in its quest to join the European Union's visa-free travel zone before the end of the year, Prime...

Italy
Italy's Meloni Scrambling to Fill Key Posts With Clock Ticking
  • World
  • 2022-10-07 13:36:45Z

(Bloomberg) -- The composition of Italy's incoming right-wing government, likely under Giorgia Meloni, is still far from certain with just a week to go...

Morgan Stanley Boosts 2023-24 LNG Price Forecast on Europe Demand
Morgan Stanley Boosts 2023-24 LNG Price Forecast on Europe Demand
  • World
  • 2022-10-07 13:13:17Z

(Bloomberg) -- Morgan Stanley raised its price estimates for liquefied natural gas in 2023 and 2024, seeing Europe's soaring demand for the fuel intensifying...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business