The Reserve Bank of Australia (RBA) is inviting industry participants to engage in the experimental research phase of a project focused on developing a wholesale Central Bank Digital Currency (CBDC) and tokenised bank deposits.
Earlier this year, the RBA released a report indicating that while there is no evident public interest in launching a retail CBDC, it would further investigate the potential of a wholesale CBDC, along with other digital currencies and infrastructure enhancements, to improve the operation of Australia’s wholesale markets.
In partnership with the Digital Finance Cooperative Research Centre, the RBA has now issued a consultation paper seeking feedback on this research initiative, named Project Acacia.
The document calls for expressions of interest from industry to take part in the experimental research phase and to join an Industry Advisory Group for the project. Feedback is also requested regarding the technical and functional capabilities of new forms of settlement infrastructure and digital money, which include wholesale CBDC and tokenised bank deposits, aimed at promoting effective tokenised asset markets and ensuring financial system stability.
Brad Jones, Assistant Governor (Financial System) at the RBA, stated, “Shaping the future of money in Australia is a strategic priority for the RBA and the Payments System Board. We are eager to collaborate with industry partners on Project Acacia to explore how innovation in wholesale markets can be facilitated by new forms of digital money and enhanced infrastructure.”