The Reserve Bank of Australia (RBA) is beginning to explore the opportunities and benefits of central bank digital currency (CBDC) for its economy.
It is understood that the RBA in collaboration with the Digital Finance Cooperative Research Center (DFCRC), a government-backed industry group, has launched a CBDC study program to determine its potential for the Australian economy.
The year-long study will investigate the innovative uses and business models that CBDC production can support, in addition to trying to understand the functionality of the technology, laws and regulations.
In addition, the program is expected to develop a limited-scale CBDC pilot that will operate in a tight environment and involve a CBDC pilot capable of being a claim on the RBA.
In the meantime, CBDC is a digital currency that includes tokens or crypto coins that are issued and supervised by a central bank.
It is also based on the value of the country's fiat currency.
So far many countries are exploring CBDC technology, and there are even some countries that already have digital currency issued by their own governments.
