Reserve Bank of Australia Putting In Investment to Roll Out CBDC Despite Initial Turn-down

By Chris Torres | October 14, 2020
thecryptosight-Reserve Bank of Australia Putting In Investment to Roll Out CBDC Despite Initial Turn-down

The Reserve Bank of Australia (RBA) is reportedly investing its resources in the research for its own CBDC, despite the comment claiming that would not be ready in under one month earlier.  

Specifically, the RBA further reportedly disclosed that the CBDC it is working on can potentially develop in the direction of a “wholesale”-prone CBDC. 

During his speech at at the University of Western Australia Blockchain, Cryptocurrency and Fintech Conference, Tony Richards — the Head of Payments Policy at the RBA, reportedly remarked the following: 

“We will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.”

Richards reportedly also shared that the public policy case for the issuance of an Australia-based general purpose or retail CBDC is still needed to be finalized. The RBA was reportedly highly doubtful towards the existence of a strong policy case, regarding the issuance of a CBDC during that time. 

Richards reportedly claimed that although Bitcoin and different digital coins function upon public blockchains, the CBDC does not have to operate similar to that – which can be built via utilizing a permissioned and centralized digital ledger.

Richards further disclosed that simultaneous with the central bank’s work monitoring cases for a retail CBDC, it is carrying out studies about technological and policy implications of a potential wholesale CBDC, where a more limited number of financial establishments can have the access to.

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