ANZ, CBA and Mastercard will join several fintechs to develop central bank digital currency applications for Australia that will involve real claims on the central bank.
ANZ and Commonwealth Bank are among 14 banks, fintechs and payments companies that will explore potential use cases and economic benefits for a central bank digital currency in Australia, the Reserve Bank said on Thursday.
The RBA will use the pilot to develop its technology systems and understanding of risk of CBDC, Dr Jones told an event organised by the Institute of International Finance on Wednesday.He said the case seemed stronger for a wholesale CBDC to circulate more expansively ahead of a retail variety CBDC, which involves various risks including the potential to encourage runs on commercial bank deposits in a crisis if holdings were not capped.
ANZ will develop use cases in offline payments, which could allow digital spending when payment systems go down. It will also explore nature-based asset trading, alongside Commonwealth Bank, to allow CBDC to facilitate trading in emerging carbon markets. Tokenisation refers to digital representations of real assets, which can be traded and settled in real-time on distributed ledger technology.
Other fintechs will see Monoova explore funds custody; NotCentralised will look at construction payments; and Unizon will develop tokenised bills. . “We’ve been exploring this space for some time, and we’re focusing on how we can leverage our in-house talent, combined with the knowledge of our partners, to offer the best possible processes and technologies to the pilot program,” Mr Dobson said.and sees real asset tokenisation and smart payments as initial use cases for CBDC.
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