Bank

Read

Reserve

Australia’s central bank has announced a shift toward wholesale CBDC development, citing greater economic benefits and fewer challenges compared to a retail version. 
The Reserve Bank of Australia seems to be prioritizing wholesale <a href="https://crypto.news/tag/cbdc/" target="_blank">CBDC</a> development over retail, citing greater economic benefits and fewer challenges for the country’s financial system. 
In a Sept. 18 <a href="https://www.rba.gov.au/speeches/2024/sp-ag-2024-09-18.html" target="_blank">conference speech</a>, RBA&nbsp;assistant governor Brad Jones emphasized the RBA’s focus on wholesale CBDC, viewing it as an “evolutionary than revolutionary” addition to the existing monetary systems, particularly in the context of systemically important markets. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 “[…] unlike a retail CBDC that would be issued for use among the public, a wholesale CBDC would represent more an evolution than revolution in our monetary arrangements.” 
 Brad Jones 
</blockquote> 
To prioritize a whole CBDC, Jones announced a three-year research initiative into digital money, with immediate plans to collaborate with industry on this type of central bank digital currency and tokenized commercial bank deposits. The central bank official says the project will explore new ledger technologies and concepts such as programmability and atomic settlement to assess potential gains for <a href="https://crypto.news/tag/australia/" target="_blank">Australia</a>‘s financial infrastructure. 
 You might also like: <a rel="" href="https://crypto.news/research-reveals-98-of-global-economy-exploring-cbdc-solutions/"> Research reveals 98% of global economy exploring CBDC solutions </a> 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="737" height="745" src="https://crypto.news/app/uploads/2024/09/hnoudshfn0844.png" alt="Australia sees greater benefits in wholesale CBDC, limits retail interest - 16" class="wp-image-14298466">
 <figcaption class="wp-element-caption">
 Type of cash payments by country since 2010 | Source: <a href="https://www.rba.gov.au/speeches/2024/sp-ag-2024-09-18.html" target="_blank">The Reserve Bank of Australia</a>
 </figcaption>
</figure> 
In contrast, the RBA views the benefits of a retail CBDC as “modest or uncertain at the present time,” citing that it would represent a “significant change” to Australia’s financial arrangements. Jones highlighted that many of the international arguments in favor of retail CBDCs are either less relevant to Australia or “uncertain at the present time, relative to the challenges it would introduce.” 
While the RBA remains open to exploring retail CBDC in the future, Jones indicated that any move in that direction would require a public policy case and “legislative change,” aligning with international norms. “As such, the Australian Government would ultimately decide whether to introduce a retail CBDC,” he said, underscoring the need for close coordination with Treasury and other government bodies. 
 Read more: <a rel="" href="https://crypto.news/australias-largest-bank-shuts-down-stablecoin-pilot-report/"> Australia’s largest bank shuts down stablecoin project: report </a>

Australia sees greater benefits in wholesale CBDC, limits retail interest

crypto.news

Other articles published on Sep 18, 2024

Pepe Cuts Rates Solana Memecoin Will Surge 16,000% Ahead of Exchange Listing, While SHIB and DOGE...

Former US President Donald Trump Made a Payment Using Bitcoin

Vitalik Reveals How Ethereum Achieved ‘Basically Zero’ Transaction Fees

Daddy Elon Solana Memecoin Will Rally 19,000% Ahead of Exchange Listing, As SHIB and BONK Underpe...

Bitcoin Climbs 3% Amid Market Volatility, Reaches $60,232 (September 18)

$175 Million Added to MicroStrategy's Offering: Is Target Bitcoin?

Join our free newsletter for daily crypto updates!