Cryptocurrencies

Reserve Bank of Australia partners up to research CBDCs – Cryptocurrencies

Reserve Bank of Australia

The Reserve Bank of Australia (RBA) plays crypto explorers. She wants to take a closer look at the impacts of creating a digital currency.

RBA has a cautious stance about a possible dive into state crypto; we are far from the dynamism of China where a Huawei Mate 40 natively accepting the digital yuan, heralds an imminent launch of the latter.

A CDBC on Ethereum

The Reserve Bank of Australia, which has hitherto held its negative position in cryptocurrencies, has announced the launch of a potential project to create its state-owned cryptocurrency (CDBC).

In a press release dated November 2, 2020, the Australian regulator announces its collaboration with the Commonwealth Bank, the National Australia Bank, the financial services company Perpetual, and society Consensys, to explore the possible uses of a digital currency on a large scale.

Partner companies will explore the possibility of developing a proof of concept for the issuance of a CDBC, through a platform based on Ethereum (ETH).

The RBA specifically mentioned the possibility for large investors to use CDBC for syndicated loans on a blockchain platform.

They could also explore the implications of delivering against a guaranteed payment of the securities with inter-chain atomic swaps.

We explore, but we are not a fan!

The deputy governor of the RBA, Michele bullock, said the institution wished to explore the impacts of the CDBC in terms of efficiency, risk management and innovation in transactions in wholesale financial markets.

TheAustralia remains cautious in his official statements, however, and underlines that the use of a CDBC remains an open subject for discussion.

The RBA said there were no strong arguments in favor of CBDCs, but that she would continue to research the subject.

In the immediate future, the RBA is satisfied with this collaboration with important partners in the financial sector.

She also underlines the success of her New Payments Platform, presented as an alternative to CDBC.

The RBA is also ready to provide access to banknotes to Australian citizens, for as long as necessary.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Which northern country will come last in the race for the CDBC, by dint of hesitation and “cautious” political discourse, above all hiding a reluctance to admit the usefulness of cryptocurrencies? The last are the first? Maybe but, Bitcoin (BTC), stablecoins like Tether (USDT), and the digital yuan, prefer to be well ahead of their competition.

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