The RBA project will explore a potential wholesale form of a central bank digital currency (CBDC) that would use distributed ledger technology (DLT), as part of ongoing research.
CBDCs are designed to be equivalent to a nation’s paper currency and subject to the same government-backed guarantees. Central banks can issue the currency as a digital representation of a country’s fiat currency, in addition to printing money.
The RBA’s project will involve the development of a proof of concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement and repayment of a tokenised syndicated loan on an ethereum-based DLT platform.
The proof of concept will be used to explore the implications of delivery versus payment settlement on a DLT platform as well as other potential programmability and automation features of a tokenised digital currency and financial assets.
Read more: https://www.investordaily.com.au/technology/48171-rba-teams-with-industry-for-digital-currency-research