Governor Philip Lowe confirmed the launching of blockchain-based CBDC by the Reserve Bank of Australia.
The emerging trend of cryptocurrency and Covid-19 raised inflation has made many countries consider making their digital currency. The Australian central bank is thinking of launching a new CBDC. Philip says that the Reserve Bank is conducting research based on launching this product.
In the past couple of years, several banks started looking into making an alternative to paper money. Multiple banks were considering launching CBDC. However, one study by the Bank of International Settlement proved that almost 80% of the central banks had made such plans.
Nevertheless, the researchers decided that there is no public demand or need for such steps. Though, a year later, the central bank governor built a team of researchers to explore the benefits of new blockchain-based central bank digital currency. With investors seeking alternatives to conventional money, Lowe believes that Australia will release its first digital currency one day.
He once told in a report that technology and data are opening new gates of inventions and this digital currency is another one of its many wonders. He further predicted that banks could rely on this money alone instead of converting money from each country during transfer. It was outlined that the bank is already working on making this a currency suitable for both the public and private sectors.
Michele Bullock, the bank’s assistant governor, says that they will be prepared when the demand for CBDC will grow, as the COVID-19 has changed RBI’s whole perspective on this matter. A few months ago, CryptoPotato stated in a report that Australian CBDC would become a major hit on Ethereum blockchain only if it becomes partners with ConsenSys, the RBI, and other two local banks.
These four firms have proposed to make a tokenized form of CBDC for use in the wholesale market. However, Tony Richards explains in a recent conference that the bank has yet not come up with a strong policy for the introduction of CBDC to public use, and the central bank is opting for a wait and watch approach.