The Reserve Bank of Australia (RBA) has announced that its principal initiative, known as “Project Acacia”, is moving into the subsequent phase of testing. This step focuses on examining how cryptocurrency assets and central bank digital currencies (CBDCs) may bolster the growth of Australia’s wholesale tokenized asset markets.
In a press release issued on Thursday, the RBA declared plans to conduct trials for 24 use cases during the upcoming stage. These trials will involve a variety of players, including fintech firms and leading banks. Project Acacia is a collaborative effort between the RBA and the Digital Finance Cooperative Research Centre, with additional support from the Australian Securities and Investments Commission (ASIC).
The ASIC has indicated that it is extending regulatory relief to project participants to facilitate the testing of tokenized asset transactions, sometimes employing CBDCs. The next phase of the project is set to probe diverse settlement assets like stablecoins, bank deposit tokens, a pilot wholesale CBDC, and improved applications of banks’ existing exchange settlement accounts at the RBA.
Major Australian banks, including the Commonwealth Bank of Australia, Australia and New Zealand Banking Corporation, and Westpac Banking Corporation, are among the pilot participants. “Project Acacia presents a unique opportunity for further collaborative exploration of tokenized asset markets and the future of money by the public and private sectors in Australia,” Brad Jones, assistant governor (Financial System) of the RBA, stated in the press release.
The Australian government is actively investigating the role of cryptocurrency assets and CBDCs within its broader financial framework. In March, the Treasury detailed plans to create a “fit-for-purpose” digital asset structure, with Project Acacia earmarked as a significant initiative.
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