The Reserve Bank of Australia (RBA) is pursuing to develop digital currency (CBDC) and digital money. The digital currency is currently being focused on wholesalers to settle transactions online.
The CBDC for wholesale will be used by banks across the country, including financial institutions. The digital currency for retailers (general public) will not be issued first as the focus remains on the wholesale sector.
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“I can confirm that the RBA is making a strategic commitment to prioritize its work agenda on wholesale digital money and infrastructure, including wholesale CBDC, rather than retail CBDC,” said Brad Jones, the Assistant Governor of the Reserve Bank of Australia to Reuters.
“It also recognizes the stabilizing role of central bank money in the settlement of wholesale market transactions. Particularly in markets that are systemically important, a point emphasized in international standards,” said Jones. The Assistant Governor noted that Australia’s CBDC digital currency appears modest as the implementation process is incomplete.
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When asked about retail CBDC for the public in Australia, Jones revealed that there is no strong requirement currently. “We are yet to see a strong public policy case emerge for issuing a retail CBDC,” he said. “Given the potential benefits of a retail CBDC in Australia appear modest at the present time. And a retail CBDC would create non-trivial challenges for financial stability and monetary policy implementation.”
134 Countries Test Digital Currencies (CBDC)
According to a recent report from the Atlantic Council, 134 countries are currently testing digital currencies for their economies. Digital currencies could change how the financial world operates in the coming decades. “Our new research shows that 134 countries are now exploring a CBDC, representing 98% of global GDP,” read the report.
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Among the 134 countries, 66 nations are already in the advanced testing phase and have crossed pilot mode. “66 countries are now in the advanced phase of exploration, which includes the launch, pilot, or development stages.”