RBA says CBDC launch still several years away

The release of the digital Australian dollar is still several years away. The central bank said in a statement following the pilot phase.

It ran from March to July 2023.

The initiative envisaged a limited issuance CBDC to test 16 different use-case scenarios by selected industry participants.

The central bank stressed that earlier research had demonstrated proof of concept, while the current phase involves issuing a real payment obligation.

Participants concluded that the national digital currency could potentially benefit Australian households and firms.

The document stressed the possibility of direct control and programmability of a tokenised CBDC. This enables a range of sophisticated payment mechanisms not supported by existing systems.

The regulator noted that further research is needed to address legal, regulatory, technical, and operational questions surrounding CBDC.

“Given the payment system’s alignment with most users’ needs, and with most CBDCs in developed economies still in the research phase — any serious consideration of issuing the digital Australian dollar is still several years away,” the report said.

In June, the Reserve Bank of Australia permitted a more prominent role for stablecoins in the economy.