‘Exploring opportunities': RBA takes next step in launching its own cryptocurrency
Dubbed Project Acacia, the RBA has announced it is moving to the trial phase by getting partners on-board to try out digital coins.
Project Acacia is a joint initiative between the RBA and the Digital Finance Co-operative Research Centre (DFCRC).
The move follows a successful completion of phase 1 in August that was based on conceptual research.
Phase 2 testing is due to be completed in the first quarter of 2026.
As part of the trial, three of the four major banks and other participants will test stablecoins, bank deposit tokens and pilot wholesale central bank digital currency (CBDC) as well as new ways of using banks' existing exchange bank accounts at the RBA.
RBA assistant governor Brad Jones said ensuring that Australia's payments and monetary arrangements were fit-for-purpose in the digital age was a strategic priority for the RBA and its payments system board.
'The use cases selected in this project will help us to better understand how innovations in
central bank and private digital money, alongside payments infrastructure, might help to uplift
the functioning of wholesale financial markets in Australia,' he said.
During the trial phase, the RBA has outsourced work to third parties, including Hedera, Redbelly, R3 Corda and Canvas Connect, to test the central bank digital currency
The bank is seeking 24 innovative use cases, including 19 pilot cases, which will involve real money and real asset transfers as well as five proof-of-concept use cases involving simulated transactions.
ASIC commissioner Kate O'Rourke said innovation was a sign of a vibrant economy and society, with the regulatory body supporting responsible development of new technologies.
'ASIC sees useful applications for the technologies underlying digital assets in wholesale
markets,' she said.
'The relief from regulatory requirements that we have announced will allow
these technologies to be sensibly tested – to explore opportunities and identify and tackle
risks.'
ASIC has given the project regulatory relief to allow participants to transact using the digital Australian dollar.
'Importantly, Project Acacia will allow industry and regulators to work together to learn more
about how these use cases may reshape the financial services industry, potentially boosting
efficiency and foster economic growth,' Ms O'Rourke said.
DFCRC chief scientist Talis Putnins said it was great to have collaboration from so many parts of the industry, from small fintechs to large banks, alongside the key
financial regulators in this innovative project.
'The real money settlement models being tested, including issuing pilot wholesale CBDC on third-party platforms, reflects another world-first for Australia in this rapidly evolving field,' Professor Putnins said.
RBA governor Michele Bullock suggested that she didn't believe in alternative payment solutions such as bitcoin during a parliamentary inquiry back in February.
'It doesn't have a solid value. You can't be guaranteed that what it's worth today it will be worth the same thing tomorrow,' she said.
'It's extremely slow relative to other payment systems (that) you can get transactions through in milliseconds.'
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