The Australian Central Bank announced today that it has started work on its own digital money project in the morning. The Central Bank will analyze the uses of a digital central bank coin based on distributed ledger technology (DLT).
The Bank of Australia has announced an official announcement about digital currency studies and has started prototyping. Australia, which has started to prepare a proof-of-concept for digital money, will receive support from banks such as Commonwealth Bank, National Australia Bank, as well as blockchain firm ConsenSys.
Will examine the areas of use
According to Reuters, the main purpose of the Australian Central Bank will be to find out in which areas this money can be used if it issues its own digital currency. Australia will examine how this digital currency will be funded and what efficiency it will offer in payments. It was reported that the studies will be carried out on an Ethereum-based DLT.
Will be completed towards the end of the year
In his statements about the bank’s digital money efforts, Vice President of the Reserve Bank of Australia, Michele Bullock, gave the message that this is a project that will directly affect Australia’s “payment system”. Bullock explained that as a result of the investigations, the efficiency of digital money, the risks it contains, and the innovations it can bring to financial transactions will be determined.
According to the CoinDesk report, Australia will have completed the proof-of-concept by the end of this year. The Bank of Australia plans to prepare a report on the findings to be obtained as a result of its investigations and publish it in the first half of next year. Meanwhile, it is known that the European Central Bank will publish a report on the digital euro next year.