Australians are currently checking a CBDC. Surprising nobody, thinking about the authoritarian manner in which the federal government managed the lockdowns. The jury is still out on Central Bank Digital Currencies, while some authorities see them as bothersome and vulnerable to abuse, others are running a pilot program. The Reserve Bank of Australia, the nation’s Central Bank, dealt with the Digital Finance Cooperative Research Centre to produce this whitepaper detailing the entire task.
In it, we discover that “the pilot CBDC will be called the eAUD” which “the eAUD will be a liability of the RBA and denominated in Australian dollars.” The Australian Central Bank confesses that it has actually been dealing with the concern “over the past few years” and, with this pilot program, they intend to identify whether a Central Bank Digital Currency is best for Australia.
The Reserve Bank of Australia likewise validated something everybody thought however nobody understood for sure. That is:
“Central banks globally are actively exploring the potential role, benefits, risks, and other implications of CBDC. This has involved the publication of discussion papers, public consultations, and the development of proofs of concept and CBDC pilots involving real financial transactions.”
It’s validated, federal governments all over are checking security coins.
Everything We Know About The Australian CBDC
First of all, the pilot task is currently running and it will continue for half of the next year:
“The project commenced in July 2022 and is expected to be completed around the middle of 2023. The project intends to test a general-purpose pilot CBDC issued as a liability of the RBA for use in real-world, pilot implementations of services offered by Australian industry participants.”
The Australian Central Bank is searching for responses to these 3 concerns:
- “What, if any, are the emerging business models and use cases that a CBDC would support, that are not effectively supported by existing payments and settlement infrastructures in Australia?”
- “What might be the potential economic benefits of issuing a CBDC in Australia?”
- “What operational, technology, policy and regulatory issues might need to be addressed in the operation of a CBDC in Australia?”
It’s essential likewise to see that the Central Bank Digital Currency “pilot project has a domestic focus in terms of participants and use cases.”
ETH cost chart for 09/27/2022 on OkCoin | Source: ETH/USD on TradingView.com
The CBDC Pilot Project Runs Over Ethereum
Add a brand-new usage case to Ethereum’s CV. The incredibly central Australia CBDC pilot leveraged its innovation to have a working design without any additional expense.
“The DFCRC will develop and install the eAUD platform as a private, permissioned Ethereum (Quorum) implementation. The eAUD ledger will operate as a centralised platform, under the management and oversight of the RBA.”
However, there’s no assurance that the Reserve Bank of Australia will continue utilizing the platform if the Central Bank Digital Currency task removes. The Central Bank just utilized Ethereum since it was hassle-free.
“The project is not evaluating the technology most suited to operating a CBDC. The CBDC pilot platform to be implemented is designed to be adequate for the use cases selected but is not intended to reflect the kind of technology that might be used to implement a CBDC, if a decision was ever made to do so.”
To surface this off, it’s worth keeping in mind the words of Matthew Mezinskis. The creator of Porkopolis Economics informed the Oslo Freedom Forum a couple of months ago:
“They like to be there to protect the bankers. So they know that if you drain deposits from the banks, and it only goes into a central bank’s CBDC currency, it can’t get loaned upon, it can’t get lent out. Then that’s a problem for the banking system. So they’re trying to figure that out right now. The common solution is that there will be limits, maybe $1000 equivalent for every CBDC account. They’re trying to figure these things out.”
A pilot program looks like an appropriate method to figure those things out.
Featured Image: RBA and DFCRC logo designs, screenshot from the .pdf| Charts by TradingView