Reserve Bank of Australia Unveils Proposed CBDC Use Cases

Reserve Bank of Australia Unveils Proposed CBDC Use Cases

The Reserve Bank of Australia said on March 3 that it has selected 14 digital currency proposed use cases from a large number of submissions obtained from industry participants. An assistant governor at the RBA, Brad Jones, said the Aussie central bank is encouraged by the composition of providers that have been “invited to participate in the live pilot.” Collaboration Between Industry Participants and the Central Bank

The Australia central bank, which has been exploring the benefits of central bank digital currency (CBDC), recently announced the digital currency’s proposed use cases as well as the names of providers “invited to participate in the live pilot.” In apress statement, the bank, which is known as the Reserve Bank of Australia (RBA), said the chosen use cases were selected from a large number of submissions from industry participants.

Brad Jones, an assistant governor at the RBA, is quoted in the statement lauding the industry participants’ willingness to engage regulators. Jones said: We are delighted with the enthusiastic engagement by industry in this important research project. It has also been encouraging that the use case providers that have been invited to participate in the pilot span a wide range of entities in the Australian financial system, from smaller fintechs to large financial institutions.

According to Jones, the pilot as well as the more comprehensive study will be conducted in parallel to “serve two ends.” The first of these ends is helping the industry gain some “hands-on learning” experience. Bolstering policymakers’ understanding of “how a CBDC could potentially benefit the Australian financial system and economy.”

CBDC Design Considerations

For his part, Dilip Rao, a CBDC program director with the Digital Finance Cooperative Research Centre (DFCRC), said the process of “validating use cases” with industry participants and regulators is important because it will likely “inform further research into design considerations for a CBDC that could potentially play a role in a tokenised economy.”

Meanwhile, some of the use cases chosen by the RBA include offline payments, corporate bond payments, and funds custody. As shown by the statement, the RBA has chosen around 14 use cases and more than eight chosen providers. Tags in this story Brad Jones, CBDC, CBDC use case, Digital Finance Cooperative Research Centre (DFCRC), Dilip Rao, Reserve Bank of Australia (RBA)

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Crypto Exchange Binance Joins Forces With Law Enforcement to Launch Anti-Scam Campaign FEATURED | 20 hours ago Silvergate Bank Terminates Crypto Payments Network as Shares Plunge to Record Low FEATURED | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleDecentralized Exchange Pancakeswap to Launch Version 3 Iteration in April Next articleGold Bug Schiff Says ‘The Months of Declining Inflation Are in the Review Mirror,’ AI Crypto Assets Surge, and More — Week in Review Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"

The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Tony Hawk"s Latest NFTs to Come With Signed Physical Skateboards Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Iran to Increase Penalties for Unauthorized Cryptocurrency Mining Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin