Central Bank of Australia to Initiate Retail Trials of Central Bank Digital Currencies on Both Public and Private Distributed Ledger Technologies
In a significant move towards digital innovation, the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) have joined forces to launch Project Acacia. This joint initiative aims to explore the potential of digital money and existing settlement infrastructure for wholesale tokenised asset markets in Australia.
The Project Acacia involves 24 use cases, with 19 pilot cases and 5 proof-of-concept cases. These use cases span a wide range of asset classes, including fixed income, private markets, trade receivables, and carbon credits. Proposed settlement assets include stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency (CBDC).
Notable participants in Project Acacia include major banks such as ANZ and Northern Trust, local fintechs, and institutions like Zerocap. Additionally, Canvas and ProspEx Group are also part of this groundbreaking project.
Brad Jones, Assistant Governor (Financial System) at the RBA, emphasised the strategic priority of ensuring that Australia's payments and monetary arrangements are fit-for-purpose in the digital age. This sentiment is shared by the participating institutions, as they collaborate to advance the use of digital currencies and distributed ledger technology (DLT) in financial markets.
While Europe and Switzerland are also embarking on similar trials, Project Acacia stands out for its focus on a wide range of asset classes and digital currencies. In contrast, Europe's Pontes project and Switzerland's Helvetia project specifically target wholesale transactions using CBDC and central bank money.
It's worth noting that Hong Kong's Project Ensemble is currently underway, although specific details about the project are not yet available.
In the meantime, Project Acacia continues to make strides, with Australian Payments Plus participating on the Hedera public network. Other participants include the Australian Bond Exchange, ANZ, Commonwealth Bank, Fireworks, Forte Tech Solutions, Imperium Markets, and Westpac Banking Corporation.
As Project Acacia moves forward, it promises to reshape the landscape of Australia's wholesale digital settlement trials and contribute significantly to the country's digital economy.
- The Project Acacia, a joint initiative by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC), is examining the potential of stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency (CBDC) within the context of digital money and existing settlement infrastructure.
- The participating institutions in Project Acacia, such as major banks like ANZ and Northern Trust, local fintechs, and entities like Zerocap, Canvas, and ProspEx Group, are collaborating to advance the use of digital currencies and blockchain technology in financial markets.
- Project Acacia's scope encompasses a wide variety of asset classes, including fixed income, private markets, trade receivables, carbon credits, and even partners like Australian Payments Plus on the Hedera public network.
- In contrast to Project Acacia, Europe's Pontes project and Switzerland's Helvetia project are more narrowly focused, targeting wholesale transactions using CBDC and central bank money.
- Beyond Project Acacia, Hong Kong's Project Ensemble is also underway, although specific details about the project are not yet available, signifying ongoing global interest in the digitalization of finance and business through technology.
