It is not focusing on retail central bank digital currencies (CBDCs) anymore. Instead, the Reserve Bank of Australia (RBA) is focusing on the creation of a commercial CBDC. RBA Assistant Governor Brad Jones recently spoke at the Intersekt Fintech Conference in Melbourne. He talked about the bank’s new three-year plan, which focuses on the benefits of trading digital currencies.
Jones pointed out that the RBA didn’t see many benefits and that a retail CBDC would pose big problems. He said that a retail CBDC might be new, but it doesn’t seem to have many real benefits for the public. It could also cause problems like higher interest rates on loans and threats to financial security.
On the other hand, the RBA thinks that a market CBDC has a lot of potential. This kind of digital cash could lower the risks of dealing with other people and running a business. It could also make things more clear, increase liquidity, and cut down on the costs of compliance and middle-men. The central bank’s main goal right now is to move Project Acacia forward. This project will look into market CBDCs and tokenized bank accounts. The goal of this project is to build on earlier work and look into cross-border uses with other central banks in the area.
Jones made it clear that a public policy case for a retail CBDC could come up in the future. However, he also said that such a move would probably need major changes to the law and would be the responsibility of the Australian government. The RBA’s plan for now includes a full study of market digital money and payment methods. In 2026, they will start looking more closely at retail CBDCs.
