The Reserve Bank of Australia announced on March 3 that it had selected 14 digital currency proposal use cases from a number of submissions received from industry participants.RBA Assistant Governor Brad Jones said the Aussie central bank is “encouraged by the composition of providers invited to participate in the live pilot.”
Collaboration between industry players and the central bank
The Australian central bank, which has been exploring the benefits of central bank digital currencies (CBDCs), recently announced a proposed digital currency use case and the names of providers “invited to participate in the live pilot. “18} in a press releaseand the Reserve Bank of Australia (RBA known as the “RBA,” stated that the use cases selected were chosen from a large number of submissions from industry participants.
Brad Jones, assistant to the RBA’s president, was quoted in a statement praising industry participants’ willingness to engage with regulators. Jones stated.
We are pleased to see industry’s enthusiasm for this important research project. It is also encouraging that the use case providers that have been asked to participate in the pilot span a wide range of entities in the Australian financial system, from small fintech companies to large financial institutions.
According to Jones, the pilot version and the more comprehensive study will be conducted in parallel to “serve two purposes. The first objective is for the industry to gain experience in “practical learning.”
to strengthen policy makers’ understanding of “how CBDCs could potentially benefit the Australian financial system and economy.”
Considerations on the design of CBDCs
Meanwhile, Dilip Rao, CBDC program director at the Digital Finance Cooperative Research Centre (DFCRC), said that the “use case validation” process with industry participants and regulators “could play a role in the tokenized economy is important because it will likely lead to further research on CBDC design considerations.”
Meanwhile, the use cases chosen by the RBA include offline settlement, bond settlement, and funds custody. As noted in the statement, the RBA has selected about 14 use cases and no less than eight providers.
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