AUSTRALIA OPEN TO IDEA OF CBDC AS FUTURE OF MONEY — RBA

Last updated: June 19, 2025, 19:57 | Written by: Linda Xie

Is Australia on the cusp of a digital currency revolution? The Reserve Bank of Australia (RBA) and Treasury today released a report summarising research to date on central bank digital currency (CBDC) and how this has informed the RBA and Treasury s current assessment of CBDC issues in Australia. The report also sets out a three-year roadmap for future work on digital money in Australia.The Reserve Bank of Australia (RBA) is signaling a significant shift, openly exploring the potential of a Central Bank Digital Currency (CBDC) as a key component of the future of money. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of. Monday, Ma. All news; Bitcoin; EthereumThis isn't just idle speculation; it's a serious consideration with the potential to reshape the Australian financial landscape. The Reserve Bank of Australia (RBA) and Treasury have released a report on central bank digital currency (CBDC). It summarises the research done so far and explains how it has shaped their current view on CBDC in Australia. The report also outlines a three‑year plan for future work on digital money.Imagine a world where state-issued digital money, representing a tokenized form of central bank reserves, becomes a common method of payment and a cornerstone of the economy.This vision is becoming increasingly tangible as the RBA dedicates resources and research to understanding and potentially implementing a CBDC.

This exploration is not happening in isolation.The RBA has been actively collaborating with industry partners, conducting research projects, and seeking feedback through consultation papers.The goal is to thoroughly investigate the potential benefits, challenges, and practical applications of a CBDC in the Australian context. Cointelegraph By Prashant Jha The Reserve Bank of Australia (RBA) is open to the idea of using central bank-issued digital currency (CBDC) as the future of money where CBDC would represent a tokenized form of central bank reserves. Brad Jones, the assistant governor (Financial System) of RBA, in his speech titled A Tokenised Future for [ ]Through initiatives like Project Acacia, the RBA is diving deep into the possibilities of wholesale tokenized asset markets and how different forms of digital money could support their development. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money would represent a tokenized form of central bank reserves. In a speech titled A Tokenised Future for the Australian Financial System, Brad Jones, assistant governor (financial system) of the RBA, talked about [ ]The RBA's commitment is clear: to understand and prepare for a future where digital currencies play a significant role in the Australian economy.

Understanding the RBA's CBDC Exploration

The Reserve Bank of Australia's (RBA) interest in a CBDC stems from a desire to modernize the financial system and ensure that Australia remains at the forefront of financial innovation. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money would represent a tokenized form of centralThis exploration involves several key components:

Research and Analysis: The RBA has been actively conducting research to understand the potential benefits and risks of a CBDC. [ Septem ] Ethereum Whale Deposits $9.12M as Trading Volume Spikes 79% Ethereum [ Septem ] Can Whales Send ETH to $3,000?This research includes examining the experiences of other countries that are exploring or have already implemented CBDCs.
Industry Collaboration: The RBA is working closely with industry partners to explore potential use cases for a CBDC. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money would represent a tokenized form of central bank reserves.This collaboration is crucial for ensuring that a CBDC meets the needs of businesses and consumers.
Public Consultation: The RBA is seeking feedback from the public on its CBDC plans. The RBA noted that the introduction of tokenized bank deposits would represent a minor change to current practice. The assistant governor of the Reserve Bank of Australia noted that pilot projects have highlighted several key areas where CBDCs could be of great use.The Reserve Bank of Australia is open to using a central bank digital currency as the future of money, where state-issued digitalThis feedback is essential for ensuring that a CBDC is designed in a way that is acceptable to the Australian population.
Pilot Programs: The RBA has conducted and is planning further pilot programs to test the feasibility and functionality of a CBDC.These pilot programs provide valuable insights into the practical challenges and opportunities of implementing a CBDC.

Brad Jones, the RBA's assistant governor for financial services, has been a key figure in driving this initiative. Australia's forward-thinking approach as the Reserve Bank of Australia (RBA) explores the future of money with the potential introduction of a Central Bank Digital Currency (CBDC).His speeches and publications have provided valuable insights into the RBA's thinking on CBDCs and the future of digital money in Australia.

The RBA and Treasury's Joint Paper on Digital Money

A significant step in the RBA's exploration of digital money was the release of a joint paper with the Treasury, titled ""Central Bank Digital Currency and the Future of Digital Money in Australia."" This paper serves as both a stocktake of the research done so far and a roadmap for future work on CBDCs.The key takeaways from this paper include:

Summary of Research: The paper summarizes the research conducted by the RBA and Treasury on CBDCs to date.This includes an assessment of the potential benefits and risks of a CBDC, as well as a review of the experiences of other countries.
Current View on CBDC: The paper outlines the RBA and Treasury's current view on CBDCs in Australia.This view is based on the research conducted to date and takes into account the specific characteristics of the Australian financial system.
Three-Year Plan: The paper sets out a three-year plan for future work on digital money in Australia.This plan includes further research, experimentation, and consultation with stakeholders.

The joint paper underscores the importance of a collaborative approach to exploring CBDCs, involving both the central bank and the government.

Project Acacia: Exploring Wholesale Tokenised Asset Markets

Project Acacia, a research initiative conducted in collaboration with the Digital Finance Cooperative Research Centre (DFCRC), is a crucial part of the RBA's work program on the future of money.This project focuses on exploring how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia.

Tokenisation involves representing real-world assets, such as stocks, bonds, or real estate, as digital tokens on a blockchain.This can potentially improve efficiency, reduce costs, and increase transparency in financial markets.Project Acacia aims to investigate the following:

Potential Use Cases: Identifying specific use cases for tokenised assets in Australia, such as supply chain finance, securitization, and cross-border payments.
Infrastructure Requirements: Determining the necessary infrastructure, including regulatory frameworks, technology platforms, and market standards, to support the development of tokenised asset markets.
Risk Management: Assessing and mitigating the potential risks associated with tokenised assets, such as cybersecurity risks, legal risks, and operational risks.

By exploring the potential of tokenised asset markets, the RBA is seeking to foster innovation and improve the efficiency of the Australian financial system.

CBDC as a Complement to Existing Forms of Money

The RBA views a CBDC not as a replacement for existing forms of money, such as cash and bank deposits, but rather as a complement.A CBDC could offer several advantages over existing forms of money, including:

Increased Efficiency: CBDCs could potentially reduce the costs and time associated with payments and other financial transactions.
Improved Security: CBDCs could be designed with enhanced security features, making them less susceptible to fraud and cyberattacks.
Greater Financial Inclusion: CBDCs could provide access to financial services for individuals who are currently excluded from the traditional banking system.
Support for Innovation: CBDCs could serve as a platform for innovation in the financial services industry, enabling the development of new products and services.

The RBA believes that a CBDC could play a crucial role in supporting the future of the Australian economy.

What are the Potential Benefits of a CBDC in Australia?

The potential benefits of introducing a Central Bank Digital Currency (CBDC) in Australia are multifaceted, reaching across various sectors of the economy and impacting both individuals and businesses.These benefits are a key driver behind the RBA's ongoing research and exploration.

Enhanced Payment Efficiency: A CBDC could streamline payment processes, making transactions faster, cheaper, and more efficient.This is particularly relevant in a digital age where instant and seamless transactions are increasingly expected. The Reserve Bank of Australia (RBA) is seriously considering the adoption of a central bank digital currency (CBDC) as the future of money. In a speech titled A Tokenised Future for theConsider, for example, cross-border payments, which often involve multiple intermediaries and significant delays.A CBDC could potentially bypass these intermediaries, leading to quicker and more affordable international transactions.
Reduced Transaction Costs: The use of a CBDC could lower transaction costs for businesses and consumers alike. The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) today published a consultation paper which seeks industry feedback on a new research initiative, Project Acacia. This project will explore how different forms of digital money and associated infrastructure could support the development of wholesale tokenised asset markets in Australia. It wasTraditional payment systems often involve fees charged by banks and payment processors.A CBDC could potentially eliminate or significantly reduce these fees, leading to cost savings for both merchants and customers.
Greater Financial Inclusion: A CBDC could provide access to financial services for individuals who are currently unbanked or underbanked.This is particularly important in remote or rural areas where access to traditional banking services may be limited. Australia open to idea of CBDC as future of money RBA The assistant governor of the Reserve Bank of Australia noted that pilot projects have highlighted several key areas where CBDCs could beBy providing a digital form of central bank money, a CBDC could empower individuals to participate more fully in the economy.
Innovation and Competition: The introduction of a CBDC could foster innovation and competition in the financial services industry. Australia open to idea of CBDC as future of money: RBA PANews ｜ The RBA assistant governor in his speech noted that the pilot CBDC projects have highlighted several key areas where CBDCs could be of great use.By providing a level playing field for all participants, a CBDC could encourage the development of new products and services that better meet the needs of consumers.
Improved Security and Resilience: A CBDC could be designed with enhanced security features, making it more resistant to fraud and cyberattacks. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money would rThis is particularly important in an era of increasing cyber threats.Moreover, a CBDC could enhance the resilience of the payment system by providing a backup in case of disruptions to traditional payment infrastructure.

Addressing Potential Challenges and Risks

While the potential benefits of a CBDC are significant, it's also crucial to acknowledge and address the potential challenges and risks associated with its implementation. The Reserve Bank of Australia (RBA) is actively researching CBDC as a complement to existing forms of money. The RBA first raised the idea of an eAUD in a speech in 2025 a time when it was considering the pros and cons. A number of projects have followed.The RBA is carefully considering these challenges as it explores the possibility of introducing a CBDC in Australia.

Cybersecurity Risks: As a digital form of money, a CBDC would be vulnerable to cybersecurity threats. In a landmark speech at the Intersekt Festival in Melbourne yesterday Brad Jones, the RBA s assistant governor for financial services explained the progress and research so far on this hot topic. The RBA and Treasury also published a joint paper Central Bank Digital Currency and the Future of Digital Money in Australia.Robust security measures would be necessary to protect the CBDC infrastructure from hacking and other attacks.
Privacy Concerns: The use of a CBDC could raise privacy concerns, as transactions would be recorded on a central ledger. The Reserve Bank of Australia (RBA) is open to the idea of using central bank-issued digital currency (CBDC) as the future of money where CBDC would represent a tokenized form of central bankStriking a balance between transparency and privacy would be essential.
Impact on the Banking Sector: The introduction of a CBDC could potentially disrupt the traditional banking sector by reducing the demand for bank deposits. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money w Crypto news community Cryptocurrency issue news tradingCareful consideration would need to be given to mitigating any negative impacts on banks.
Operational Risks: The operation of a CBDC would involve complex technology and infrastructure. The RBA s Research on CBDC. Jones shared the RBA s active exploration of CBDC as a comple ment to existing forms of money. He mentioned that the RBA re cently conducted a joint rese arch project with industry partners to examine potential use cases for a re tail CBDC in Australia.Managing operational risks, such as system failures and errors, would be crucial.
Legal and Regulatory Issues: The introduction of a CBDC would require the development of new legal and regulatory frameworks. The Reserve Bank of Australia (RBA) is open to using a central bank digital currency (CBDC) as the future of money, where state-issued digital money would represent a tokenized form of central bank reserves.In a speech titled A Tokenised Future for the Australian Financial System, Brad Jones, assClear and comprehensive regulations would be necessary to govern the use of a CBDC and protect consumers.

The RBA's Three-Year Roadmap for Digital Money

The RBA and Treasury's joint paper on digital money outlines a three-year roadmap for future work on digital money in Australia. It is also timely because this morning the RBA and Treasury will publish their first ever joint paper part stock take, part roadmap on central bank digital currency (CBDC) and the future of digital money in Australia. This is the latest initiative to emerge from the RBA s expanding work program on the future of money.This roadmap includes the following key areas of focus:

Further Research: Conducting further research on the potential benefits and risks of a CBDC, as well as the experiences of other countries.
Experimentation and Prototyping: Developing and testing prototypes of a CBDC to assess its feasibility and functionality.
Stakeholder Consultation: Engaging with stakeholders, including businesses, consumers, and government agencies, to gather feedback on CBDC plans.
Policy Development: Developing appropriate policy and regulatory frameworks to govern the use of a CBDC.
International Collaboration: Working with other central banks and international organizations to share knowledge and coordinate efforts on digital money.

This roadmap demonstrates the RBA's commitment to a thorough and deliberate approach to exploring the potential of digital money in Australia.

A Tokenised Future for the Australian Financial System

The RBA's exploration of a CBDC is part of a broader vision for a tokenised future for the Australian financial system. The Reserve Bank of Australia (RBA) is open to the idea of using central bank-issued digital currency (CBDC) as the future of money where CBDC would represent a tokenized form of central bank reserves. Brad Jones, the assistant governor (Financial System) of RBA, in his speech titled A Tokenised Future for the Australian Financial SystemBrad Jones, the RBA's assistant governor, has spoken extensively about this vision, emphasizing the potential for tokenisation to transform financial markets and improve efficiency.

In a tokenised future, a wide range of assets, including securities, real estate, and commodities, would be represented as digital tokens on a blockchain.This could lead to several benefits, including:

Increased Liquidity: Tokenisation could make it easier to buy and sell assets, increasing liquidity and reducing transaction costs.
Greater Transparency: Blockchain technology could provide greater transparency into asset ownership and transactions.
Automated Compliance: Smart contracts could automate compliance with regulatory requirements, reducing the burden on businesses.
New Investment Opportunities: Tokenisation could create new investment opportunities for individuals and institutions.

The RBA believes that tokenisation has the potential to unlock significant value in the Australian financial system.

Frequently Asked Questions About CBDCs

As the concept of a Central Bank Digital Currency (CBDC) gains traction, many questions arise about its nature, implications, and potential impact.Here are answers to some frequently asked questions:

What is a CBDC?

A CBDC is a digital form of central bank money, issued and backed by the central bank.It's essentially an electronic version of physical cash, but designed for the digital age.

How is a CBDC different from cryptocurrency?

While both are digital currencies, they differ significantly.Cryptocurrencies are typically decentralized and unregulated, while a CBDC is centralized and regulated by the central bank.CBDCs also have the backing and stability of the government, unlike most cryptocurrencies.

Who would use a CBDC?

A CBDC could be used by individuals, businesses, and even government agencies for various purposes, including payments, remittances, and government disbursements.

How would a CBDC impact commercial banks?

The impact on commercial banks is a key consideration.A CBDC could potentially reduce the demand for bank deposits, but it could also create new opportunities for banks to offer innovative financial services.

What are the potential risks of a CBDC?

Potential risks include cybersecurity threats, privacy concerns, and the potential for financial instability.Careful consideration and mitigation strategies are essential.

How is Australia approaching the development of a CBDC?

Australia is taking a cautious and methodical approach, focusing on research, experimentation, and stakeholder consultation to ensure that a CBDC, if implemented, is safe, efficient, and beneficial for the country.

Conclusion: A Cautious but Optimistic Outlook

The Reserve Bank of Australia's (RBA) exploration of a Central Bank Digital Currency (CBDC) is a clear indication that Australia is taking the future of money seriously.While the RBA is approaching the idea of a CBDC with caution, it is also open to the potential benefits that a digital form of central bank money could bring to the Australian economy.The ongoing research, industry collaboration, and public consultation are crucial steps in ensuring that any future decisions regarding a CBDC are well-informed and aligned with the needs of the Australian people.

The three-year roadmap for digital money underscores the RBA's commitment to a thorough and deliberate approach.By exploring the potential of tokenised asset markets and considering the challenges and risks associated with CBDCs, the RBA is positioning Australia to be a leader in financial innovation.

The key takeaways from the RBA's exploration of CBDCs are:

The RBA is actively researching the potential of a CBDC as a complement to existing forms of money.
The RBA is collaborating with industry partners and seeking feedback from the public.
The RBA has a three-year roadmap for future work on digital money in Australia.
The RBA is considering the potential benefits and risks of a CBDC.
The RBA is committed to a cautious and methodical approach.

As the digital landscape continues to evolve, the RBA's proactive approach to exploring CBDCs is essential for ensuring that Australia remains at the forefront of financial innovation and that the Australian financial system continues to serve the needs of the community.This commitment paves the way for a potentially revolutionary shift in how Australians interact with money, paving the way for a more inclusive, efficient, and resilient financial ecosystem.