An announcement made by the Reserve Bank of Australia (RBA) revealed that it will focus on the possibility of developing and integrating a central bank digital currency (CBDC). The Bank will be collaborating with other banks as well as a number of software companies to bring this experiment to fruition.

Some of these partners include the National Australia Bank, Perpetual -a financial services company-, and ConsenSys, the software company.

RBA also revealed that the Proof-of-Concept of the CBDC project would involve the exploration of decentralized financial services.

The POC will be used to explore the implications of ‘atomic’ delivery-versus-payment settlement on a distributed ledger technology platform as well as other potential programmability and automation features of tokenised CBDC and financial assets” a statement claimed.

The CNDC project is said to be completed by the end of the year. The parties involved in the project will be pushing their findings for a 2021 release.

The Reserve Bank of Australia has joined the ranks of other global financial institutions’ endeavor to issue a centralized digital fiat. China has been working on this for the longest period of time and is very close to launching its own brand of digitalized currency. Until recently, the Bahamas beat them to the punch in a very unexpected launch of its own CBDC, deemed the “sand dollar”. As of yet, the United States has not made any specific plans on testing and introducing a CBDC.

Top Forex Brokers