© Reuters Australian Reserve Bank studies issuing its own digital currency
Sydney (Australia), Aug 9 (.).- The Australian Reserve Bank (RBA) announced on Tuesday a project to explore the potential of having a digital currency that will focus on the economic benefits that accompany to its issuance and circulation in the oceanic country.
The project, which will last one year and will be developed with the Digital Finance Cooperative Research Center (DFCRC), includes the implementation of a pilot test in which digital currencies (CBDC) will be issued on a limited scale and which will operate in an environment controlled by the RBA, according to a statement from the monetary entity.
The RBA will convene business sectors to develop this public digital currency as part of this project that focuses on the use and innovative business models linked to the issuance of a CBDC, among other legal, technical and regulatory aspects.
DFCRC Director General Andreas Furche remarked in the note that digital currency “is no longer a question of technological feasibility. The key research questions are now what economic benefits a CBDC could bring and how it could be designed to maximize those benefits.” “.
Public digital currencies CBDC (Central Bank Digital Currency) share blockchain technology with cryptocurrencies, such as Ehterum, although they differ in their essence. While the former are issued and regulated by a central authority such as federal banks and reserves, the latter are decentralized and the user preserves his anonymity.
A report by the consulting firm PwC published last May indicated that 80 percent of central banks around the world have promoted plans to put their CBDC into circulation, with China, the second largest economy in the world, being the country that has made the most progress in this front since the launch of the e-yuan in 2020.
There are currently three digital currencies in operation and at least 28 pilot projects globally, while almost 70 central banks have publicly communicated their work to create their respective digital currency, according to the consultancy.