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 The RBA assistant governor in his speech noted that the pilot CBDC projects have highlighted several key areas where CBDCs could be of great use.
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<div class="cointelegraph">
 <p>The Reserve Bank of Australia (RBA) is open to the idea of using central bank-issued digital currency (CBDC) as the <a rel="noopener noreferrer nofollow" title="future" href="https://thebittimes.com/tag/future.html">future</a> of <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> where CBDC would represent a tokenized form of central bank reserves.</p>
 <p>Brad Jones, the assistant governor (Financial System) of RBA, in his speech titled “A Tokenised Future for the Australian Financial System,” talked about the opportunities and challenges arising from the tokenization of assets and <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> in the digital age while shedding light on the proposed plan to use CBDCs as a form of <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a>.</p>
 <p>Jones started his speech by outlining the use of different forms of <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> over the course of history and how financial instruments have evolved over time. While talking about tokenization and tokenized forms of <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a> in the modern era, Jones talked about stablecoins and CBDCs.</p>
 <p>He noted that stablecoins issued by “well-regulated financial institutions and that are backed by high-quality assets (i.e. government securities and central bank reserves) could be widely used to settle tokenised transactions, however, due to lack regulatory guidelines these stablecoins issued by private parties often come with underpinning risk. Thus, CBDCs in the form of tokenized bank deposits could become a good form of transaction settlement.</p>
 <p>The assistant governor noted that the introduction of tokenized bank deposits would represent a minor change to current practice given that deposits issued by a variety of banks are already widely exchanged and settled (at par) across the central bank balance sheet. A payment between two parties using tokenized deposits would still be settled via a transfer of ES (or wholesale CBDC) balances between the payer and payee bank.</p>
 <p><strong>Related: </strong><strong>China opens industrial park for digital yuan CBDC development in Shenzhen</strong></p>
 <p>RBA’s assistant governor also shared some of the findings from its pilot CBDC program including a range of areas where CBDC could add value in wholesale payments such as facilitating atomic settlement in tokenized asset markets. The pilot project also highlighted opportunities for a wholesale CBDC to act as a complement to new forms of privately issued digital <a rel="noopener noreferrer nofollow" title="money" href="https://thebittimes.com/tag/money.html">money</a>, namely tokenised bank deposits and asset-backed stablecoins.</p>
 <p><strong><em>Magazine: Real reason for China’s war on crypto, 3AC judge’s embarrassing mistake: Asia Express</em></strong></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/australia-open-to-idea-of-cbdc-as-future-of-money-rba-tbt66509.html">https://thebittimes.com/australia-open-to-idea-of-cbdc-as-future-of-money-rba-tbt66509.html</a></p>

Australia open to idea of CBDC as future of money: RBA

TheBitTimes

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