After the completion of the CBDC pilot program, the Australian central bank shared the findings of the report to explain how the role of CBDC can bring a better level of advancement in payment services.
Australia is a very big region for the crypto sector. However the crypto sector is evolving in the Australian jurisdiction just like the US but here the situation is somewhat better over the US. Unlike the US Federal Reserve (Fed), the Reserve Bank of Australia (RBA) is fond of blockchain technology and recently completed its CBDC pilot program.
With the completion of the CBDC pilot program, RBA pointed out 4 main areas where CBDC can play a vital role, however CBDC is not necessarily required there.
The top two important roles that CBDC can play is the tokenization of assets & complex payment systems. According to RBA, there are huge numbers of complex payment systems in existence but the existing technology is not enough to solve the complexity but CBDC, or say e-AUD, can easily bring smart & simple solutions.
According to RBA, CBDC can be used in the debt securities markets, promote innovation in emerging private digital money sectors, and enhance resilience and inclusion within the wider digital economy. So e-AUD can be directly used in the tokenization of stock assets & also fiat money by private companies.
It is worth it to note that currently 130 country’s central banks are engaged in the CBDC development & adoption race, to bring high level modernization in the traditional digital financial services.
In the beginning of this year, a dozen of central banks distanced their feets from the CBDC development race because of several hidden risks & technical challenges.