Only a month ago, the Reserve Bank of Australia claimed that there was no valid reason to develop a CDBC
The Reserve Bank of Australia revealed that it is carrying out a study on Central Bank Digital Currency, less than a month after stating that it does not need them.
The RBA also said it was considering a more targeted, wholesale CBDC.
Tony Richards, head of payments policy at the RBA, speaking at the University of Western Australia’s Blockchain, Cryptocurrency and Fintech Conference, said:
„We will continue to consider the opportunity to issue a CBDC: the way it could be designed, the potential benefits and policy implications, and the conditions under which significant demand for a CBDC could emerge“.
Richards added that there were still no strong reasons for Australian public decision-makers to issue a generalist or retail CBDC: according to rumours leaked in mid-September, the RBA was very sceptical at the time and did not believe that a CBDC was necessary.
Richards also pointed out that while Bitcoin and the other Bitcoin Up cryptocurrencies are based on public blockchains, this would probably not happen with a CBDC, developed using a centralised permissioned digital register.
The RBA is currently still evaluating elements of this potential CBDC, such as its account-based or token-based nature, not to mention the dispute over its potential offline use.
Richards said that the Central Bank, in addition to monitoring use cases for a retail CBDC, is conducting research into the technological and policy implications of a potential wholesale CBDC, accessible only to a small group of financial companies.
The executive has reassured the public that the Central Bank is open-minded about CBDC and will continue to monitor developments in this area:
„If some jurisdictions move strongly towards CBDCs, there will be many central banks, such as ours, that will pay close attention to future developments.
One of the countries that is investing the most in the Central Bank Digital Currency is China: Beijing is stepping up testing for its CBDC, including the free distribution of 10 million „digital yuan“ (about $1.5 million) to the citizens of Shenzhen.
Translated with www.DeepL.com/Translator (free version)