Pepe (pepe) 
Australia’s central bank has announced a shift toward wholesale CBDC development, citing greater economic benefits and fewer challenges compared to a retail version.
Reserve Bank of Australia’s Focus on Wholesale CBDC
The Reserve Bank of Australia (RBA) is prioritizing wholesale CBDC development over retail, aiming to enhance the country’s financial system with fewer complications.
During a conference on September 18, RBA assistant governor Brad Jones emphasized that the focus on wholesale CBDC represents an “evolutionary rather than revolutionary” addition to the existing monetary systems, particularly in systemically important markets.
“[…] unlike a retail CBDC that would be issued for use among the public, a wholesale CBDC would represent more an evolution than revolution in our monetary arrangements.”
Three-Year Research Initiative
Jones announced a three-year research initiative into digital money, with immediate plans to collaborate with the industry on developing this type of central bank digital currency and tokenized commercial bank deposits. The project will explore new ledger technologies and concepts such as programmability and atomic settlement to assess potential benefits for Australia’s financial infrastructure.
Comparison with Retail CBDC
In contrast, the RBA views the benefits of a retail CBDC as “modest or uncertain at the present time,” noting that it would represent a “significant change” to Australia’s financial arrangements. Jones pointed out that many international arguments in favor of retail CBDCs are either less relevant to Australia or “uncertain at the present time, relative to the challenges it would introduce.”
While the RBA remains open to exploring retail CBDC in the future, Jones indicated that any move in that direction would require a public policy case and “legislative change,” aligning with international norms. He underscored the need for close coordination with Treasury and other government bodies, stating that the Australian Government would ultimately decide whether to introduce a retail CBDC.
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