The Reserve Bank of Australia said on March 3 that it has selected 14 proposed digital currency use cases from a large number of submissions obtained from industry participants. An RBA aide to the governor, Brad Jones, said the Australian central bank is encouraged by the composition of providers that have been “invited to participate in the live pilot.”
Collaboration between industry participants and the Central Bank
The central bank of Australia, which has been exploring the benefits of central bank digital currency (CBDC), recently announced the proposed use cases of the digital currency, as well as the names of the providers “invited to participate in the pilot in alive”. in a Press releasethe bank, known as the Reserve Bank of Australia (RBA), said the chosen use cases were selected from a large number of submissions from industry participants.
Brad Jones, assistant governor of the RBA, is quoted in the statement as praising the willingness of industry participants to engage regulators. Jones said:
We are delighted with the industry’s enthusiastic commitment to 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.
According to Jones, both the pilot study and the more comprehensive study will be done in parallel to “serve two ends.” The first of these purposes is to help the industry gain some “learning by doing” experience. Strengthen policy makers’ understanding of “how a CBDC could potentially benefit the Australian financial system and economy.”
CBDC Design Considerations
For his part, Dilip Rao, director of the CBDC program at the Digital Finance Cooperative Research Center (DFCRC), said the process of “use case validation” with industry participants and regulators is important. because it will likely “inform further research into design considerations for a CBDC that could potentially play a role in a tokenized economy.”
Meanwhile, some of the RBA’s chosen use cases include offline payments, corporate bond payments, and custody of funds. As the statement shows, the RBA has chosen around 14 use cases and more than eight chosen vendors.
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