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Reserve Bank of Australia Reveals Proposed CBDC Use Cases – Featured Bitcoin News

The Reserve Bank of Australia announced on March 3 that it had selected 14 proposed digital currency use cases from a large pool of submissions from industry participants. RBA Deputy Governor Brad Jones said the Australian central bank was encouraged by the mix of providers who were “invited to participate in the live pilot”.

Cooperation between industry participants and the central bank

The Reserve Bank of Australia, which has been researching the benefits of central bank digital currency (CBDC), recently announced the proposed use cases of the digital currency, as well as the names of vendors who have been “invited to participate in the live pilot.” In a press statement, the bank, known as the Reserve Bank of Australia (RBA), said the selected use cases were chosen from a large number of submissions from industry participants.

Brad Jones, an associate governor of the RBA, is quoted in the statement as praising industry participants’ willingness to get regulators involved. Jones said:

We are pleased about the enthusiastic engagement of the industry in this important research project. It was also encouraging that the use case providers invited to participate in the pilot covered a wide range of companies in the Australian financial system, from smaller fintechs to large financial institutions.

According to Jones, both the pilot and the larger study will be conducted in parallel to “serve dual purposes.” The first of these aims is to help the industry get some ‘hands on learning’. Strengthening policymakers’ understanding of “how a CBDC could potentially benefit Australia’s financial system and economy”.

CBDC design considerations

For his part, Dilip Rao, a CBDC program director at the Digital Finance Cooperative Research Center (DFCRC), said the process of “validating use cases” with industry participants and regulators is important as it is likely to “require further research into design considerations for a CBDC that may be a… role in a token economy.”

Meanwhile, some of the use cases selected by the RBA include offline payments, corporate bond payments and funds custody. As per the statement, the RBA selected around 14 use cases and more than eight selected vendors.

What do you think of this story? Let us know what you think in the comment section below.

Reserve Bank of Australia Reveals Proposed CBDC Use Cases – Featured Bitcoin News, Crypto Trading News

Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively on the economic woes of some African countries, as well as how digital currencies can provide an escape route for Africans.

photo credit: Shutterstock, Pixabay, WikiCommons

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Source: Crypto News Deutsch

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