The Australian CBDC pilot conducted by the country’s central bank has revealed interesting insights into CBDC use cases with huge potential.
The Reserve Bank of Australia has been conducting an Australian CBDC pilot for some time. The central bank has released a CBDC report after the project has concluded. The document details the various CBDC use cases and other high-potential areas for the digital dollar.
“Submissions were made by a range of Australian industry participants, from smaller fintechs to larger financial institutions, and often involved a consortium of entities collaborating on specific use cases,” said the CBDC report. It also mentioned an industry consultation with government departments and over 50 companies. All such stakeholders had placed their views on CBDC use cases.
The CBDC report underlined four key areas where the Australian CBDC could have immense potential. It included innovative payments that had smart contracts executing automatic transactions. Secondly, it could support deeper innovation in the financial markets. It reported how the industry was generating interest in using the underlying technology of CBDCs for tokenization.
Thirdly, the CBDC report described how the digital dollar could help promote interoperability of private digital money. Stablecoins and tokenized bank deposits were a part of this group. Finally, the document said the CBDC could drive financial inclusion in the digital economy.
The report then went on to highlight the various capabilities of CBDCs. It included atomic settlement, programmability, transparency, and direct control. Further, the technical, legal, and regulatory findings were mentioned in the document.