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 The Reserve Bank of Australia (RBA) seems to be prioritizing the development of a wholesale central bank digital currency (CBDC) over a retail version because of the potential economic benefits and reduced complexity for the nation’s financial system.
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RBA Assistant Governor Brad Jones,<a href="https://www.rba.gov.au/speeches/2024/sp-ag-2024-09-18.html" rel="noopener noreferrer nofollow"> speaking at the Intersekt Conference on September 18,</a> emphasized the focus on wholesale CBDC as an “evolutionary rather than revolutionary” enhancement to current monetary systems, particularly within systemically important markets.
Jones revealed a three-year research initiative on digital currency, including immediate collaboration with industry stakeholders on CBDC and tokenized commercial bank deposits. The project will explore emerging ledger technologies and innovative concepts such as programmability and atomic settlement to assess their potential benefits for Australia’s financial infrastructure.
He noted that many international arguments supporting retail CBDCs are either less applicable to Australia or 
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 “uncertain at present, especially when weighed against the challenges they might present.”
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While the RBA remains open to considering a retail CBDC in the future, Jones stressed that such a move would require strong public policy justification and legislative changes aligned with international standards.
According to Jones, the decision to introduce a retail CBDC would ultimately rest with the Australian government. He highlighted the importance of close collaboration with the Treasury and other key government agencies.
RELATED: <a style="color: #0000ff;" href="https://defi-planet.com/2024/06/national-australia-banks-venture-arm-backs-digital-asset-custodian-zodia-custody-with-major-investment/#google_vignette" rel="noopener noreferrer nofollow">National Australia Bank’s Venture Arm Backs Digital Asset Custodian, Zodia Custody, With Major Investment</a>
This development follows the RBA’s<a href="https://defi-planet.com/2024/06/national-australia-banks-venture-arm-backs-digital-asset-custodian-zodia-custody-with-major-investment/#google_vignette" rel="noopener noreferrer nofollow"> declaration</a> in 2023 that Australia was still “years away” from issuing its own CBDC despite growing global interest. At the time, the Bank stated that it has been exploring potential CBDC benefits since 2021 in collaboration with the Digital Finance Cooperative Research Centre (DFCRC). It, however, claimed that there are significant legal, regulatory, and technical challenges that require further investigation before any issuance can occur.
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The post <a href="https://defi-planet.com/2024/09/australias-central-bank-opts-for-wholesale-cbdcs-cites-uncertainty-around-retail-version/" rel="noopener noreferrer nofollow">Australia’s Central Bank Opts for Wholesale CBDCs, Cites Uncertainty Around Retail Version</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Australia’s Central Bank Opts for Wholesale CBDCs, Cites Uncertainty Around Retail Version

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