The Australian Central Bank and the Reserve Bank of Australia (RBA) are focusing heavily on a wholesale central bank digital currency (CBDC) for its potential economic benefits over a retail CBDC. Recently, the RBA has launched Project Acacia, a three-year plan to explore wholesale CBDC opportunities.
RBA May Reconsider Retail CBDC Stance
According to a Reuters report, Project Acacia will seek opportunities to improve the efficiency, transparency, and resilience of wholesale markets. Particularly, the project focuses on tokenised money and new settlement infrastructure. Assistant Governor Brad Jones said the RBA will collaborate with regional central banks later in the project.
Jones suggested that both the RBA and Treasury could still reevaluate a retail CBDC and confirmed plans for a follow-up paper on this discussion in 2027.
However, the senior RBA executive hinted that the approval of a retail CBDC is less likely to happen.
“Our assessment is that the potential benefits of a retail CBDC generally appear modest or uncertain at the present time, relative to the challenges it would introduce,” Jones said.
The RBA expects that Project Acacia will reduce counterparty and operational risks, increase transparency, and lower costs for institutions and customers.
Australia is now one of 44 nations testing digital versions of their national currencies, as per the U.S.-based think tank Atlantic Council. So far, only three countries, including Jamaica, Nigeria, and the Bahamas, have officially launched CBDCs. Of the other 87 countries monitored by the Council, 20 are in the development stage, and 39 are still conducting research.
