March 31, 2023

Central Bank of Australia tested the system on the Ethereum blockchain for interbank payments

The Reserve Bank of Australia (RBA) submitted to the Senate a report on testing the interbank settlement system at based on the Ethereum blockchain, as a result, the advantages of state cryptocurrencies (CBDC) were revealed.

Despite a recent statement by the Central Bank of Australia thatstate stablecoins are unlikely to replace ordinary money, the bank nevertheless tested the system on the blockchain to determine the effectiveness of the cryptocurrency of the Central Bank in settlements with financial institutions and commercial banks. As a result of the study, RBA concluded that government cryptocurrencies can indeed reduce transaction costs, speed up payments and provide customers with greater access to financial services.

“Using the blockchain, system participants canto transfer funds around the clock in real time, without delays or using third-party payment systems, ”the Reserve Bank of Australia said in a report.

RBA added that in the field of digital paymentsmore and more fintech companies and technology giants are appearing, and this suggests that blockchain is building capacity in the international financial system. However, despite these advantages, state stablecoins can still adversely affect the current financial infrastructure, especially the sphere of mortgage lending and the issuance of loans to commercial enterprises.

However, this is testing the payment system.on the basis of Ethereum, it indicates that the RBA is beginning to realize the advantages of state digital currencies, and it is likely that over time the bank will soften their attitude and think about issuing its own cryptocurrency.

Six months ago, the president of the Reserve Bank of Australia said he did not see a future for stable libra from Facebook, given the large number of regulatory issues that arose.