Australia is unable to take any solid decision about adopting Central Bank Digital Currency (CBDC). There are certain unresolved issues due to which the Central Bank of Australia has decided to delay the CBDC adoption. In a report, the central bank states that CBDC could be regarded as a complement but not as a substitute if we talk about innovation in the private sector.
Central Bank Digital Currency is being admired by various countries like Brahama, Brazil, Ghana and a few others. China took initial and significant steps by conducting the pilot test for CBDC and launching the digital Yuan. Although, CBDC is getting heat around the world Australia seems to delay the CBDC adoption for a few years. There are certain issues behind the delay of CBDC adoption which includes the improper assessment of accosted risks, benefits, cost and implication of CBDC across the country.
Research Project of DFCRC and RBA
Digital Finance Cooperative Research Centre (DFCRC) last year conducted research with the collaboration of The Reserve Bank of Australia for crypto adoption. DFCRC is a research-based program worth 124.3 million initiated by the collaboration of Australian industry partners, universities and governments.
The research was conducted to look for the possible opportunities which can be yielded by asset digitization and CBDC adoption. Research showed that CBDC could be regarded as a complement but not as a substitute if we talk about innovation in the private sector. Moreover, the report also focused on related issues like legal, operational, technical and regulatory issues.
The report says that Cryptographic keys are required to perform CBDC pilot testing. But affordability and capability are of prime concern in this regard as firms lack that much expertise to handle DLT networks. The study also shows the implementation of CBDC is quite hard and challenging. It would dynamically affect the ways, we will use for CBDC pilot testing and implementation
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