The Reserve Bank (the central banking institution of Australia) has collaborated with the Digital Finance Cooperative Research Centre (DFCRC) to unveil a technical White Paper on its future Central Bank Digital Currency (CBDC). The organization is estimated to complete the pilot version of the financial product by the middle of 2023.

Australia has joined the growing list of countries that are working towards issuing a digital form of their national currency. According to a recent announcement, the Reserve Bank issued a White Paper called “Australian CBDC Pilot for Digital Finance Innovation,” which explores all the possible use-cases of the intended product.

The institution teamed up with the Digital Finance Cooperative Research Centre (DFCRC) on a research project that examined all technological, legal, and regulatory considerations related to the CBDC in order to launch it. Additionally, the Reserve Bank has invited all industry participants to give their opinion on how the digital currency would interact with the national monetary system.

Ordinary participants can also evaluate the product and test its value proposition. The product trial is expected to end at the beginning of 2023 and its results should be made public by the middle of next year. In September 2021, the Reserve Bank joined forces with the central banks of Malaysia, Singapore, and South Africa to conduct a trial of cross-border transactions using CBDCs.

The Bank of International Settlement’s Innovation Hub was also part of the project by overseeing the actions of the involved financial institutions. Assistant Governor of the Central Bank of Malaysia – Fraziali Ismail – argued that the multi-CBDC shared program has the potential to leapfrog legacy payment arrangements and serve as the beginning of a more efficient international settlement platform.

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