Australia’s central bank is testing digital money in real-world financial systems.
- 24 use cases will be tested using digital assets and central bank money.
- Major banks like CBA and ANZ are joining the program.
- Regulators approved the trial by easing legal rules.
RBA Launches Second Phase of Project Acacia
The Reserve Bank of Australia (RBA) has started a new trial using digital currencies. It’s part of Project Acacia, which aims to study how digital money and asset tokenization can help banks and financial markets. This is the second phase of the project. It includes 24 real-use cases. Nineteen of them will involve real money. Five cases will be simulations.
What Will Be Tested
During the trial, digital money types like stablecoins, bank deposit tokens, and a central bank digital currency (CBDC) will be used. These will be tested in areas such as private markets, fixed income, carbon credits, and different types of accounts at the RBA.
Involvement from Major Banks
Three of Australia’s “big four” banks are taking part: Commonwealth Bank (CBA), ANZ, and Westpac. They are working with international partners to explore the benefits of digital currency. CBA is teaming up with JPMorgan to look at lending and borrowing in the repo market. These tests aim to make trading faster, safer, and cheaper.
Bank-Specific Use Cases
ANZ will lead two case studies. One focuses on tokenized trade payables. This helps suppliers manage their working capital and cash flow. The second study will look at tokenized fixed-income products. The goal is to settle payments and loans with lower risk using CBDCs.
Green Light from Regulators
The Australian Securities and Investments Commission (ASIC) temporarily removed some legal limits for this test. This means the trial can include assets that are not yet regulated. ASIC Commissioner Kate O’Rourke said this would help find both opportunities and risks in digital finance.
Long-Term Crypto Rules Still in Progress
While the trial moves ahead, Australia is also building a full set of crypto laws. The government wants to bring crypto exchanges under existing financial rules. It has been working with the country’s largest banks and took public feedback on crypto laws starting in 2022.
Source: cointelegraph.com
