Australians are now testing CBDC, which is not surprising, given the dictatorial way the government handled the lockdowns. Some authorities view Central Bank Digital Currencies as troublesome and susceptible to abuse, while others are conducting a test scheme.
According to a white paper, the Reserve Bank of Australia, the nation’s central bank, collaborated with the Digital Finance Cooperative Research Centre to develop this whitepaper outlining the entire initiative.
The pilot CBDC will be known as the eAUD, and the eAUD will be an RBA obligation denominated in Australian dollars. With this pilot program, the Australian Central Bank aims to establish whether or not a Central Bank Digital Currency is appropriate for Australia. The Australian Central Bank has admitted that it has been working on the subject for the past few years.
Additionally, the Reserve Bank of Australia verified what everyone thought, but no one knew for sure. That is to say:
“Central banks globally are actively exploring the potential role, benefits, risks, and other implications of CBDC. This has involved the publication of discussion papers, public consultations, and the development of proofs of concept and CBDC pilots involving real financial transactions.”
It is proven that all governments are testing surveillance coins.
All We Know Regarding the Australian CBDC
Firstly, the pilot project is already underway and will continue for the first six months of the followingnext year:
“The project commenced in July 2022 and is expected to be completed around the middle of 2023. The project intends to test a general-purpose pilot CBDC issued as a liability of the RBA for use in real-world pilot implementations of services offered by Australian industry participants.”
The Australian Central Bank seeks responses to the following three questions:
- Which emerging business models and use cases would a CBDC enable that are not successfully supported by Australia’s existing payments and settlement infrastructures?”
- What are the possible economic advantages of granting a CBDC in Australia?
- What operational, technological, policy and regulatory considerations may be necessary for the functioning of a CBDC in Australia?
Regarding participants and use cases, it is vital to note that the Central Bank Digital Currency pilot project has a local focus.
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