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Australia’s central bank sees potential in wholesale digital currency -Breaking

by Mike Robinson

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© Reuters. FILEPHOTO: This is the view of a worker reflected on a wall of Central Sydney’s Reserve Bank of Australia head office. It was taken March 1, 2016, in Australia. REUTERS/David Gray

SYDNEY (Reuters), Australia’s central banking said Wednesday that it sees promise in establishing a wholesale cryptocurrency, which would allow syndicated lending to be more efficient and safer.

The Australian government will soon overhaul its regulatory framework to payment systems, a move that comes just as it is about to release the report.

After a one-year-long research, the Reserve Bank of Australia concluded that the tokenised currency of the central bank (CBDC), which was created by the Reserve Bank of Australia, could be used to finance, settle, and repay tokenized loans on an Ethereum-based distributed leger technology (DLT).

This project demonstrated that the platform can provide operational risks reductions and efficiency improvements by replacing paper-based and manual processes.

The RBA stated that an enterprise-grade DLT platform could be used to address the requirements of a wholesale CBDC platform and tokenized assets platform. It would also have the appropriate security controls.

The research project, which looked only at wholesale use of a digital currency, was run in conjunction with Commonwealth Bank of Australia (OTC:), National Australia Bank (OTC:), Perpetual and ConsenSys, with input from King & Wood Mallesons.

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