Reserve Bank of Australia Plans to Launch Digital Currency on Ethereum 

News / 02.11.2020

The Reserve Bank of Australia (RBA) has started exploring a central bank’s digital currency’s possibilities. The Apex bank has partnered with Australia’s two largest banks and Ethereum software company ConsenSys to explore its digital currency.  Findings from the research are expected to be presented in early 2021.

The Assistant Governor of the Reserve Bank of Australia, Michele Bullock, further explained the project’s details. According to him, the project is to research and test the viability of a CBDC for wholesale financial markets.

Wholesale banking involves transactions between institutions like corporations or banks instead of retail banking provided to the general public. The announcement by the Australian Central Bank is a shift from its stance in the past. In 2017, the Governor of the Reserve Bank of Australia, Philip Lowe, claimed that the central bank had no plans of issuing a wholesale or retail digital currency.

Digital Currency Dominating The Financial Space

Over the past few months, the need for a Central Bank Digital Currency has been on the rise. This recent announcement from the Reserve Bank of Australia goes a long way to show the importance of digital currency.

The Australian central bank joins the long list of countries and tech companies exploring digital currencies. Just yesterday, the European Central Bank opened a public consultation to access the public opinion on the development of a Digital Euro.

The European Central Bank plans to explore the issuance of the digital euro mid-2021. The bank believes that the development of a digital euro would improve digitization in the region.

Also, the Central Bank of Bahamas is becoming the latest national financial institution to launch a state-backed digital currency. The digital currency is known as ‘Sand Dollar,’ which is pegged to the USD and made available to all 393,000 residents of the Bahamas from October 21st.

Olowoporoku Adeniyi is a blockchain enthusiast and crypto evangelist. Currently he loves all things crypto and covers happenings within the blockchain space.