Reserve Bank of Australia Collaborates With Commonwealth Bank & Consensys To Research CBDC

As per recent announcement from the Reserve Bank of Australia (RBA), the financial institution will be joining hands with the National Australia Bank, the Commonwealth Bank, the financial services firm Perpetual, and blockchain software technology company ConsenSys on a venture to explore the possible usage of a comprehensive CBDC in the nation using Ethereum-based DLT.

The Reserve Bank of Australia mentioned that it would be investigating the growth of a proof-of-concept for the issuance of a tokenized form of central bank digital currency. The bank precisely stated wholesale market partakers possibly using the virtual currency for tokenized syndicated loans on a distributed ledger technology-based platform and trying to figure out the implications of delivery-versus-payment security settlements with cross-chain atomic swaps.

The Reserve Bank of Australia’s Assistant Governor, Michele Bullock mentioned that with this project they are trying to figure out the implications of a central bank digital currency for effectiveness, risk management and modernization in wholesale financial market dealings.

As per the Reserve Bank of Australia, the project will explore if there is an imminent role for a wholesale central bank digital currency in the Australian payments system.

Furthermore, the central bank mentioned that the project will be completed by the end of 2020 and it will release a report next year.