Australia's Central Bank Launches Digital Currency Project

AUG 1 2022·Updated AUG 9 2022

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Image credit: Reuters

The Facts

On Tues., Australia's central bank announced plans to launch a one-year research project to examine the benefits of a central bank digital currency (CBDC).
Reuters
As part of the project, the Reserve Bank of Australia (RBA) will create a pilot digital Australian dollar and operate it for the duration of the program.
Sky News
The RBA will work with the Digital Finance Cooperative Research Centre (DFCRC), while the Treasury will participate as a member of the steering committee. Private industry leaders will also be allowed to participate.
Bloomberg.com
Industry members interested in participating in the program will be invited to develop specific examples of a CBDC providing innovative and value-added payment and settlement services to people or businesses.
Reuters
The RBA is expected to publish a paper within the next few months to explain its approach and objectives, as well as to detail how industry members can participate.
TechNode Global
According to the International Monetary Fund (IMF), roughly 100 countries are already considering rolling out their own CBDCs, with China and the Bahamas having already distributed them to the public.
Al Jazeera

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The Spin

Pro-establishment narrative

The RBA is taking a necessary step toward normalizing the already-established cryptocurrency market. The question isn't whether the technology works, it's how the government can best collaborate with crypto industry leaders to ensure a CBDC maximizes the potential benefits of an official currency for all Australians.

Retail Banker International

Establishment-critical narrative

While a digital currency certainly has advantages, we should have privacy concerns. A CBDC - which would allow the monitoring and restricting of transactions - could become a government instrument that violates people's financial independence.

The Conversation