{"id":378436,"date":"2021-12-09T05:51:50","date_gmt":"2021-12-09T02:51:50","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/australian-reserve-banks-project-atom-cbdc-research-finds-numerous-benefits\/"},"modified":"2021-12-09T05:51:50","modified_gmt":"2021-12-09T02:51:50","slug":"australian-reserve-banks-project-atom-cbdc-research-finds-numerous-benefits","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/australian-reserve-banks-project-atom-cbdc-research-finds-numerous-benefits\/","title":{"rendered":"# Australian Reserve Bank\u2019s \u2018Project Atom\u2019 CBDC research finds numerous benefits"},"content":{"rendered":"<p>&#8220;<strong># Australian Reserve Bank\u2019s \u2018Project Atom\u2019 CBDC research finds numerous benefits  <\/strong>&#8221;<br \/>\n<img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvZGY4NWE4ZGUtM2Y2Ni00MWRkLTliZWUtMWZkZjc2MTFiZTA1LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-128018ef>The Reserve Bank of Australia (RBA) published a report into its two-year research project into wholesale central bank digital currencies (CBDCs) that emphasized the benefits of digitizing and autonomizing manual, paper-based banking processes using distributed ledger <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> (DLT). <\/p>\n<p>The report marks the conclusion of the two-year project named \u201cProject Atom\u201d that was conducted in partnership with the Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Perpetual, and ConsenSys, along with additional input from King &amp; Wood Mallesons. <\/p>\n<p>Commenting on Project Atom, RBA\u2019s assistant governor (Financial System) Michele Bullock noted that it \u201cdemonstrated the potential for a wholesale CBDC and asset tokenization to improve efficiency, risk management and innovation in wholesale financial market transactions.\u201d <\/p>\n<p>A wholesale CBDC refers to a central bank issued digital currency that is designed for the settlement of interbank transfers and transactions between financial institutions, as opposed to a retail CBDC that is intended for public use. <\/p>\n<p>The CBDC research was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.rba.gov.au\/media-releases\/2021\/mr-21-30.html\">published<\/a> on Dec. 8, the same day Treasurer and Deputy Liberal leader Josh Frydenberg unveiled an ambitious \u201cpayments and crypto reform plan\u201d for fintech and crypto regulation in Australia. The government has indicated it is in favor of at least six crypto reform proposals recommended by a Senate Committee, and is investigating others.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Too slow? We&#8217;re on a rocket  ship ride. Hold on tight. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/meuqgKjp3h\">https:\/\/t.co\/meuqgKjp3h<\/a><\/p>\n<p>\u2014 Steve Vallas (@stevevallas) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/stevevallas\/status\/1468720481893109765?ref_src=twsrc%5Etfw\">December 8, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThe project consisted of a proof-of-concept (POC) for the issuance of a \u201ctokenized form of CBDC\u201d that could be utilized in a digitized wholesale syndicated loan market. The testing took place on an Ethereum-based distributed ledger technology (DLT) platform. <\/p>\n<p>The report found that a wholesale CBDC backed by DLT technology could significantly increase efficiency and reduce operational risk by \u201creplacing highly manual and paper-based processes related to the origination and servicing\u201d of data, transactions, loan payments and settlements to name a few. <\/p>\n<p>Some issues that the RBA highlighted however, concerned \u201ctransaction privacy, finality, throughput and efficiency\u201d of CBDC and DLT usage particularly related to blockchains that are not designed for wholesale purposes. <\/p>\n<p>The POC experimented with a two-tier model for the issuance and distribution of a CBDC, wherein the RBA issued the digital currency to the commercial banks and then the banks opened up availability to \u201celigible wholesale market participants that they sponsor onto the platform.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Reserve Bank warns Aussies over punting on \u2018fad driven\u2019 cryptocurrencies<\/em><\/strong><\/p>\n<p>The RBA said that it has explored the concept of CBDCs since 2018 \u2014despite playing down its importance on multiple occasions \u2014 but has gradually ramped up its focus on a digital currency since 2020 amid growing interest from governments across the globe, citing China in particular who has already rolled out numerous public trials of the digital yuan. <\/p>\n<p>Bullock outlined that the RBA \u201cwill continue its research on CBDCs as part of its strategic focus area on supporting the evolution of payments.\u201d<\/p>\n<p>Speaking with the Australian Financial Review on Dec. 8, Sophie Gilder, the CBA\u2019s head of blockchain and digital assets <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.afr.com\/companies\/financial-services\/rba-says-digital-currency-could-make-wholesale-markets-more-efficient-20211208-p59frf\">emphasized<\/a> the \u201chigh-level benefits\u201d of using a CBDC, noting that an interoperable register and payments system could provide greater transparency for payments, data and auditing: <\/p>\n<blockquote><p>\u201cI think of it as \u2018operational alpha\u2019: greater efficiency and greater transparency, which means you don\u2019t have to separately audit and report on activities, and you can have better AML [anti money laundering] procedures because you have a real-time check.\u201d<\/p><\/blockquote>\n<p>\u201cThat would be beneficial for the economy and make it easier for regulators to do their job, while the programmability would be a giant leap forward and highly beneficial,\u201d she added.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/australian-reserve-bank-s-project-atom-cbdc-research-finds-numerous-benefits\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Australian Reserve Bank\u2019s \u2018Project Atom\u2019 CBDC research finds numerous benefits &#8221; The Reserve Bank of Australia (RBA) published a report into its two-year research project into wholesale central bank digital currencies (CBDCs) that emphasized the benefits of digitizing and autonomizing manual, paper-based banking processes using distributed ledger technology (DLT). The report marks the conclusion&#8230;<\/p>\n","protected":false},"author":1,"featured_media":378437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMTIvZGY4NWE4ZGUtM2Y2Ni00MWRkLTliZWUtMWZkZjc2MTFiZTA1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,87273,75554,87274,116545,74355,20358,70934],"class_list":["post-378436","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-commonwealth-bank-of-australia","tag-dlt","tag-national-australia-bank","tag-reserve-bank","tag-adoption","tag-australia","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/378436","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=378436"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/378436\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/378437"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=378436"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=378436"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=378436"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}