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Australia’s central bank proposes centralized digital currency

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The Reserve Bank of Australia (RBA) has announced a project to investigate the potential uses for a federally backed digital currency.

According to Xinhua, the RBA announced a year-long, limited-scale trial of a central bank digital currency (CBDC) in collaboration with the Digital Finance Cooperative Research Centre (DFCRC).

“The Bank and the DFCRC will select a range of different use cases to participate in the pilot, based on their potential to provide insights into the possible benefits of a CBDC,” said the RBA.

According to Andreas Furche, CEO of the DFCRC, the technology for a digital currency already existed, and the project was focused on determining how a CBDC could benefit Australia.

“The key research questions now are what economic benefits a CBDC might enable and how it might be designed to maximise those benefits,” he says.

Unlike traditional digital currencies such as Bitcoin and Ethereum, a CBDC would be government-stabilized and regulated.

About the author

Brendan Byrne

While studying economics, Brendan found himself comfortably falling down the rabbit hole of restaurant work, ultimately opening a consulting business and working as a private wine buyer. On a whim, he moved to China, and in his first week following a triumphant pub quiz victory, he found himself bleeding on the floor based on his arrogance. The same man who put him there offered him a job lecturing for the University of Wales in various sister universities throughout the Middle Kingdom. While primarily lecturing in descriptive and comparative statistics, Brendan simultaneously earned an Msc in Banking and International Finance from the University of Wales-Bangor. He's presently doing something he hates, respecting French people. Well, two, his wife and her mother in the lovely town of Antigua, Guatemala.

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