The Reserve Bank of Australia said on March 3 that it had selected 14 proposed digital currency use cases from a large number of submissions received from industry participants. The RBA’s assistant governor, Brad Jones, said the Australian central bank was encouraged by the line-up of providers who had been “invited to participate in the live pilot”.
Cooperation between industry participants and the central bank
The Reserve Bank of Australia, which is exploring the benefits of a central bank digital currency (CBDC), recently announced the proposed use cases for the digital currency, as well as the names of providers “invited to participate in the live pilot”. IN press statementthe bank, which is known as the Reserve Bank of Australia (RBA), said the selected use cases were chosen from a large number of submissions from industry participants.
Brad Jones, the RBA’s assistant governor, was quoted in the statement as praising the willingness of industry players to engage regulators. Jones said:
We are delighted with the enthusiastic participation of industry in this important research project. It was also encouraging that the use case providers who were invited to participate in the pilot covered 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 larger study will be conducted in parallel to “serve both ends.” The first of these objectives is to help industry gain some “hands-on” experience. Strengthening policymakers’ understanding of “how CBDC could potentially benefit the Australian financial system and economy”.
CBDC Design Considerations
For his part, Dilip Rao, CBDC program director at the Digital Finance Cooperative Research Center (DFCRC), said the process of “validating use cases” with industry participants and regulators is important because it is likely to “inform further research on design considerations for a CBDC that could potentially play a role in a tokenized economy.”
Meanwhile, some of the use cases chosen by the RBA include offline payments, corporate bond payments and custody of funds. As seen from the statement, the RBA has selected around 14 use cases and more than eight selected suppliers.
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