Latest news with #Hedera
Yahoo
a day ago
- Business
- Yahoo
RBA announces huge crypto move
The Reserve Bank of Australia is taking the next step in creating a new digital version of the Australian dollar. 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.' Ms Bullock, however, said that was her personal opinion and not one held by the RBA. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Australia's Central Bank to Explore Developing Wholesale Tokenized Asset Markets
The Reserve Bank of Australia (RBA) will explore the development of wholesale tokenized asset markets alongside an array of industry participants. "Project Acacia" will use stablecoins, pilot wholesale central bank digital currency (CBDC) and bank deposit tokens in 24 use cases of tokenizing a range of asset classes, such as fixed income and private markets. Tokenization refers to the process of minting assets such as bonds and equities as tokens that can be bought, sold and traded on blockchains, with the aim of making processes faster, cheaper and more transparent. The Australian Securities and Investments Commission (ASIC) is also providing regulatory relief in order to streamline the pilot, which will involve the testing of tokenized asset transaction between participants and other selected financial institutions, the RBA announced on Thursday. Issuance of pilot wholesale CBDC for testing the use cases will take place on different blockchain platforms, such as Hedera and R3 Corda. Participants in Project Acacia include Fireblocks, Northern Trust and Australian banks Commonwealth Bank, Australia and New Zealand Banking Corporation (ANZ) and Westpac. The project is the a sign of the Australian government's plans to integrate digital assets into its economy being put into practise. The Australian Treasury published a whitepaper in March, describing how the government planned to embrace tokenization, real-world assets and wholesale CBDCs to make financial markets more efficient. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Finextra
6 days ago
- Business
- Finextra
Australia to commence multiple trials of tokenised asset settlement and CBDC
Project Acacia, a joint initiative between the Reserve Bank of Australia and Digital Finance Cooperative Research Centre (DFCRC), has selected 14 participants to undertake trials of tokenised asset settlement in financial markets. 1 24 innovative use cases from a diverse range of organisations, ranging from local fintechs to major banks, have been conditionally selected for this next stage of the project. This will include 19 pilot use cases, which will involve real money and real asset transactions, and five proof-of-concept use cases involving simulated transactions. The use cases involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets for the use cases include stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks' existing exchange settlement accounts at the RBA. Issuance of pilot wholesale CBDC for testing use cases will occur on a range of private and public-permissioned DLT platforms, including Hedera, Redbelly Network, R3 Corda, Canvas Connect and other EVM-compatible networks. Testing of use cases will occur over the next six months, with a report on the findings from the project expected to be published in the first quarter of 2026. Brad Jones, assistant governor at the RBA says: 'Ensuring that Australia's payments and monetary arrangements are fit-for-purpose in the digital age is a strategic priority for the RBA and the Payments System Board. Project Acacia represents an opportunity for further collaborative exploration on tokenised asset markets and the future of money by the public and private sectors in Australia. '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. The Australian Securities and Investment Commission (Asic) is providing regulatory relief to participants to support and streamline the pilot. Asic commissioner Kate O'Rourke says: "Asic sees useful applications for the technologies underlying digital assets in wholesale markets. The relief from regulatory requirements that we have announced today will allow these technologies to be sensibly tested—to explore opportunities and identify and tackle risks. '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.'
Business Times
6 days ago
- Business
- Business Times
Australia takes another step toward a central bank digital currency
[SYDNEY] Australia's central bank said on Thursday it was taking another major step toward a wholesale central bank digital currency (CBDC) with a range of industry partners pursuing projects using real money and assets for the first time. The Reserve Bank of Australia said its 'Project Acacia' initiative would test 19 pilot cases involving money and assets, along with five proof-of-concept use cases involving simulated transactions. The trials involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets include CBDCs, stablecoins and bank deposit tokens, as well as new ways of using commercial banks' existing deposits at the RBA. The platforms include Hedera, Redbelly, R3 Corda, Canvas Connect and other compatible networks. Testing will occur over the next six months, with a report due in the first half of next year, the RBA said. '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,' said Brad Jones, an RBA assistant governor overseeing the financial system. The RBA is concentrating on wholesale uses for a digital currency, having decided there was no economic benefit in an official retail cryptocurrency. According to the central bank, the benefits of a wholesale CBDC include reducing counterparty and operational risks, freeing up collateral, increasing transparency and auditability and reducing costs for institutions and customers. REUTERS
News.com.au
6 days ago
- Business
- News.com.au
‘Exploring opportunities': RBA takes next step in launching its own cryptocurrency
The Reserve Bank of Australia is taking the next step in creating a new digital version of the Australian dollar. 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.'
