March 4, 2024

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

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

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

“With the help of blockchain, system participants cantransfer funds around the clock in real time, without delays and the use of 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 systembased on Ethereum indicates that the RBA is beginning to recognize the benefits of government digital currencies, and it is likely that over time the bank will soften its attitude toward them and consider 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.