The Reserve Bank of Australia Launches a Pilot Program for CBDCs Based on Ethereum
Australian central bank RBA has introduced a CBDC trial program using Ethereum. Ripple, Hedera, Binance, JPMorgan, Stellar, and others took part in the initiative.
Direct control, programmability, atomic settlement, etc. are only some of the characteristics of the new CBDC being evaluated by the Reserve Bank of Australia.
The Reserve Bank of Australia recently released a 44-page study that investigated the possibility of an Australian CBDC and its characteristics and applications. The study was conducted in part so that the prototype CBDC could be tested out in a real-world, transactional setting with representatives from the relevant industries.
Binance, Ripple, Stellar, and even conventional financial behemoth JPMorgan all took part in the Reserve Bank of Australia’s test initiative. More than $500,000 in policy CBDC was issued by the central bank throughout the duration of the program. All CBDCs were redeemed after the project’s conclusion, and the project was shut down immediately afterward.
Bill Morgan, a well-known cryptocurrency attorney, has stated, “I think this is a wholesale CBDC,” though further investigation into the Reserve Bank’s documents leads one to Project Dunbar, the BIS, the Central Bank of Malaysia, the Monetary Authority of Singapore, and prototypes of shared settlement platforms used by multiple CBDCs.
According to reports, the CBDC was denominated in Australian dollars, all the way down to one cent. Interest was not paid on the prototype CBDC by the Reserve Bank of Australia. The trial CBDC platform has certain restrictions, including a lack of functionality for deploying smart contracts and other blockchain codes.
Furthermore, the prototype CBDC could not be issued on or transferred to any intermediary sites. The atomic settlement, in which settlement occurs in a unified fashion, gave the holder immediate authority without requiring an intermediary and was one of its distinguishing qualities.