02 Mar Research Project Exploring Use Cases for CBDC
SYDNEY, (2, March 2023)
As previously announced, the Reserve Bank is collaborating with the Digital Finance Cooperative Research Centre (DFCRC) on a research project to explore potential use cases and economic benefits of a central bank digital currency (CBDC) in Australia.
The project involves selected industry participants demonstrating potential use cases for a CBDC using a limited-scale pilot CBDC that is a real digital claim on the Reserve Bank. The project received a large number of use case submissions from a range of industry participants. A range of criteria were considered in selecting the use cases to participate in the pilot, including the potential to provide insights into the possible benefits of a CBDC.
Today we are announcing the use case proposals, along with their providers, which have been invited to participate in the live pilot, which will take place over the coming months.
Brad Jones, Assistant Governor (Financial System) at the RBA said, “We are delighted with the enthusiastic engagement by industry in this important research project. It has also been encouraging that the use case providers that have been invited to participate in the pilot span a wide range of entities in the Australian financial system, from smaller fintechs to large financial institutions. The pilot and broader research study that will be conducted in parallel will serve two ends – it will contribute to hands-on learning by industry, and it will add to policy makers’ understanding of how a CBDC could potentially benefit the Australian financial system and economy.”
Dilip Rao, Program Director – CBDC with the DFCRC said, “The variety of use cases proposed covers a range of problems that could potentially be addressed by CBDC, including some that involve the use of CBDC for atomic settlement of transactions in tokenised assets. The process of validating use cases with industry participants and regulators will inform further research into design considerations for a CBDC that could potentially play a role in a tokenised economy.”
A report on the project is expected to be published around the middle of the year.
Selected Use Cases and Providers
The following use cases and their providers have been invited to participate in the pilot. Brief profiles of the use cases can be found here.
Sonia Patman at email@example.com