Australia embraces CBDCs but where does Ethereum come in
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Australia embracesCBDCs, but where does Ethereum come in
To thesurprise of absolutely no one, Australia is now testing a CBDC. CentralBank Digital Currencies have been up for debate for a long time now. While someauthorities consider them hazardous and prone to abuse, others are pursuing apilot program.
Thewhitepaper describing the continental island nation's initiative was created incollaboration with the Digital Finance Cooperative Research Center. The authorof the same is the Reserve Bank of Australia, the nation's central bank.
The eAUD,which will be a liability of the RBA and be valued in Australian dollars, willbe known as the pilot CBDC, according to the document. With this pilot program,the Australian Central Bank hopes to ascertain whether or not a Central BankDigital Currency is appropriate for Australia. The bank has alsoacknowledged that it has been working on the problem "for the past fewyears."
Anexploration of CBDCs
The ReserveBank of Australia also confirmed something that had been widely speculated, butwas previously unknown.The Australian Central Bank is looking for solutions tospecific problems. First, which future business models and use cases, if any,are supported by a CBDCs, but are not sufficiently supported by Australia'scurrent payment and settlement infrastructures?
Second, whatpossible economic advantages may the Australian issuance of a CBDC have? Thelast question – What operational, technological, policy and regulatory concernsmight need to be resolved to operate a CBDC in Australia?
According tothe whitepaper, the Central Bank Digital Currency trial project has a"domestic focus in terms of participants and use cases."
Australiachooses Ethereum
To Ethereum'sresume, add a new use case. Utilizing its technologies, the highlycentralized Australia CBDC pilot is able to create a workable model at noadditional cost.
The eAUDplatform, which is a private, permitted Ethereum (Quorum)implementation, will be created and set up by the DFCRC. The RBA will be incharge of managing and supervising the eAUD ledger, which will function as acentralized platform.
The RBA didnot explicitly state that it will issue a CBDC in the document, but it didstate that it is looking for industry participants' input to "add toongoing study." According to the document, the experiment isanticipated to be completed by the start of next year, with results beingreleased in the middle of 2023.