The Reserve Bank of Australia (RBA) has published a report on the results of a study of distributed ledger technology and the issuance of “wholesale” government digital currency.
The Central Bank of Australia has completed a two-year research project called Project Atom in partnership with the Commonwealth Bank of Australia (CBA), the National Bank of Australia (NAB), Perpetual and ConsenSys.
The report highlights the benefits of paper-based automation using distributed ledger technology (DLT). The “wholesale” currency of the central bank is intended for interbank transfers and transactions between financial institutions.
“Project Atom has demonstrated the potential to create a wholesale central bank currency and tokenize assets to improve efficiency, manage risk and innovate financial market operations,” said Australian Deputy Governor Michele Bullock.
As part of the testing, the researchers identified several issues. Among them – the privacy of transactions, as well as the bandwidth and efficiency of the practical use of currency, especially in blockchains that are not intended for wholesale trade.
A proof of concept (PoC) test was also conducted with a two-tier model of currency issuance and distribution. To this end, the RBA issued a digital currency for commercial banks. Bullock noted that the study will continue.
Earlier it became known that a major reform of payment systems will be carried out in Australia, which will bring digital assets out of the shadows. Treasurer Josh Friedenberg said the government will introduce new rules that “will broaden the definition of services and products subject to regulation, including in the cryptocurrency industry.
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