The Reserve Bank of Australia’s “Project Atom” CBDC study found many benefits


The Reserve Bank of Australia (RBA) released a report in its two-year wholesale central bank digital currency (CBDC) research project that emphasized the use of distributed ledger technology (DLT) to digitize manual, paper-based banking processes And the benefits of automation.

The report marks the end of a two-year project called “Project Atom”. Cooperate Cooperation with Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Perpetual and ConsenSys, and additional input from King & Wood Mallesons.

RBA Assistant President (Financial Systems) Michele Bullock commented on Project Atom that it “demonstrates the potential of wholesale CBDC and asset tokenization in improving the efficiency, risk management and innovation of wholesale financial market transactions.”

Wholesale CBDC refers to the digital currency issued by the central bank to settle inter-bank transfers and transactions between financial institutions, rather than retail CBDC for public use.

CBDC research is Publish On December 8, the same day, the Minister of Finance and Deputy Leader of the Liberal Party Josh Frydenberg (Josh Frydenberg) announced an ambitious “payment and cryptocurrency reform plan.” Fintech and crypto regulation In Australia. The government has expressed support for at least six cryptocurrency reform proposals recommended by the Senate committee and is investigating other proposals.

The project includes a proof of concept (POC) for the issuance of a “tokenized form of CBDC” that can be used in the digital wholesale syndicated loan market. The test was conducted on the distributed ledger technology (DLT) platform based on Ethereum.

The report found that wholesale CBDCs supported by DLT technology can significantly improve efficiency and performance by “replacement of data, transactions, loan payments, and settlements related to highly manual and paper-based processes such as data, transactions, loan payment, and settlement.” Reduce operational risks.

However, some of the issues highlighted by RBA involve the “transaction privacy, finality, throughput, and efficiency” used by CBDC and DLT, especially those related to blockchains that are not designed for wholesale purposes.

The POC experimented with a two-tier model of issuance and distribution of CBDC, in which RBA issued digital currency to commercial banks, and then the bank opened it up to “qualified wholesale market participants they sponsored on the platform.”

related: Reserve Bank warns Australians not to invest in “fashion-driven” cryptocurrencies

The Reserve Bank of Australia says it has Explored this concept Number of CBDCs since 2018 – despite Downplay its importance Many times-but gradually increasing attention to digital currency since 2020 More and more interested Governments from all over the world, especially China, they have launched many Public trial of digital renminbi.

Brock outlined that the Reserve Bank of Australia “will continue to conduct research on CBDC as part of its strategic priority areas to support payment development.”

On December 8, Sophie Gilder, head of CBA blockchain and digital assets, said in an interview with the Australian Financial Review emphasize The “advanced benefits” of using CBDC and pointing out that interoperable registration and payment systems can provide greater transparency for payments, data, and audits:

“I think it is’operational alpha’: higher efficiency and greater transparency, which means that you do not have to audit and report activities separately, you can have better AML [anti money laundering] Procedures because you have real-time inspections. “

“This will benefit the economy and make it easier for regulators to do their jobs, and programmability will be a huge leap and very beneficial,” she added.