The
Reserve Bank of Australia (RBA) has run a proof of concept for a wholesale Central Bank Digital Currency (
CBDC). Its experiments were run on a private permissioned version of Ethereum, and the bank plans to extend its exploration this year.
The RBA’s Innovation Lab simulated the issuance of CBDC tokens to commercial banks, including the banks exchanging the tokens and redemption by the central bank.
In a December 2019
paper submitted to the Senate Select Committee on Financial Technology, the RBA stated it did not envisage a retail CBDC. It gave the argument that in a crisis, a CBDC may be used as a substitute for commercial bank deposits which could de-stabilize the financial system. Not mentioned was recent research looking at discouraging the use of a
CBDC as a store of value.
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