The central bank of Australia is in no rush to launch a CBDC – a report by Saumil Kohli.

As other nations rush to launch central bank-backed digital currency dubbed CBDC, the Reserve Bank of Australia is not joining the bandwagon.

According to Australian local news platforms, the Reserve Bank of Australia’s recent payments paper indicates that the central bank is taking a cautious approach when it comes to CBDCs and privately issued stablecoins. According to the Australian central bank, there is no urgent case or need to introduce a national digital currency. The regulator argues that the country has an efficient, real-time payment platform that eliminates the need for a CBDC. Central banks across countries are currently exploring CBDCs, and some are very close to issuing it to the general public.

 

“The use of cash for transactions is decreasing.” 

The regulator noted that the use of cash for transactions is decreasing in the country as Australian citizens are getting rid of banknotes just like in other countries like Sweden. According to the central bank, despite the COVID-19 crisis in the country, the demand for cash has gone up. In this regard, RBA has committed to continue making it easy for Australians to access banknotes “for as long as Australians wish to keep using them.” The Reserves Bank’s paper also explored the projects being carried in China, Sweden, and Canada – some of the countries which have taken the CBDC initiatives proactively. 

 

Central banks continue to explore CBDCs. 

Since Facebook announced its crypto project Libra last year, central banks across countries have started to take a serious look at the possibility of national digital currencies. The People’s Bank of China is all set to become the first major nation to launch its national digital currency. The central bank has been working on its national digital currency, dubbed DCEP, for the last five to six years and is now very close to issuing it to the general public. As reported earlier, the Bank for International Standards revealed that CBDC was more searched than bitcoin and Libra this year. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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