The On tap Bank of Australia said on March 3 that it has selected 14 digital currency proposed use cases from a chunky number of submissions obtained from industry participants. An assistant governor at the RBA, Brad Jones, said the Aussie middle bank is encouraged by the composition of providers that have been “invited to participate in the live pilot.”
Collaboration Between Assiduity Participants and the Central Bank
The Australia central bank, which has been exploring the benefits of central bank digital currency (CBDC), recently advertised the digital currency’s proposed use cases as well as the names of providers “invited to participate in the live pilot.” In a press proclamation, the bank, which is known as the Reserve Bank of Australia (RBA), said the chosen use cases were selected from a bountiful number of submissions from industry participants.
Brad Jones, an assistant governor at the RBA, is quoted in the statement lauding the dynamism participants’ willingness to engage regulators. Jones said:
We are delighted with the enthusiastic engagement by industry in this notable research project. It has also been encouraging that the use case providers that have been invited to participate in the lead span a wide range of entities in the Australian financial system, from smaller fintechs to large financial practices.
According to Jones, the pilot as well as the more comprehensive study will be conducted in parallel to “serve two ends.” The original of these ends is helping the industry gain some “hands-on learning” experience. Bolstering policymakers’ understanding of “how a CBDC could potentially gain the Australian financial system and economy.”
CBDC Design Considerations
For his part, Dilip Rao, a CBDC program director with the Digital Capitalize Cooperative Research Centre (DFCRC), said the process of “validating use cases” with industry participants and regulators is prominent because it will likely “inform further research into design considerations for a CBDC that could potentially perform upon a role in a tokenised economy.”
Meanwhile, some of the use cases chosen by the RBA include offline payments, corporate bond payments, and funds custodianship. As shown by the statement, the RBA has chosen around 14 use cases and more than eight chosen providers.
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