Australia: Central Bank to Prioritize Wholesale CBDC over Retail
CryptoNewsTerminal Staff17 Sep, 2024
Australia: Central Bank to Prioritize Wholesale CBDC over Retail
The Reserve Bank of Australia (RBA) has announced its intention to prioritize the development of a wholesale central bank digital currency (CBDC) over a retail CBDC. The decision was made after a thorough assessment of the potential benefits and risks associated with both types of CBDCs. RBA Deputy Governor Brad Jones stated that the bank believes a retail CBDC is not in the best interests of Australia at this time, but wholesale CBDCs offer significant advantages for commercial banks and the central bank. The wholesale CBDC will be the initial focus of the RBA's efforts. The RBA's decision aligns with the findings of a recent study conducted by the Bank for International Settlements (BIS), which suggested that wholesale CBDCs could improve the efficiency and safety of financial transactions, particularly in cross-border payments. The RBA's move towards a wholesale CBDC is a significant step towards the adoption of digital currencies in Australia. It will be interesting to see how the RBA's approach to CBDCs evolves in the coming years and whether other central banks follow suit.
