Central Bank of Australia successfully completed a test of digital currency

The Reserve Bank of Australia (RBA) experimented with digital currency by moving between bankstokens backed by real assets.

The Reserve Bank of Australia believes that the creationThe “digital Australian dollar” carries unpredictable risks. However, according to representatives of the institution, the potential value in developing a digital currency is quite large. 

The RBA laboratory used the private Ethereum network for the project, simulating the process of issuing Central Bank tokens and their distribution among commercial banks. 

Bank representatives said that consumerDemand for CBDC may be very small, given the stability of Australia's banking system and the large number of deposit accounts. If it becomes widespread, the digital currency will cause a reduction in bank deposits, which in turn will reduce the ability of banks to issue household and commercial loans.

However, according to the report, the nationalBlockchain-based digital currency can provide round-the-clock payments that would be cheaper and take less time. The bank decided to continue this study in 2020 and plans to involve external partners.

Let us recall that back in 2018, the “smart money” project was launched in Australia, during which banks and institutions explored the potential of blockchain technology and cryptocurrencies.