Thailand and Australia Look Into Use Cases for Central Bank Digital Currencies

The Reserve Bank of Australia is looking to collaborate with the Digital Finance Cooperative Research Centre (DFCRC) to explore use cases for central bank digital currencies (CBDCs) in the country. This joint research project aims to concentrate on how the issuance of a CBDC can support “innovative use cases and business models.”

Throughout the project, the Reserve Bank and DFCRC will also assess the technological, legal, and regulatory considerations. They expect the pilot to last around a year. During its course, a CBDC will be established to operate in a ring-fenced environment — where a financial asset is separated from the rest. The Reserve Bank and DFCRC also plan to invite industry stakeholders to develop specific use cases.

The Reserve Bank will publish a paper in the following months with more details regarding the project. “This project is an important next step in our research on CBDC,” explained deputy governor of the Reserve Bank Michele Bullock. “We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia.”

Late last week, the Bank of Thailand (BOT) also announced its plan to conduct retail CBDC testing by the end of the year. It separated its pilot into two tracks. The BOT dubbed its first track the “Foundation track,” which will last from the end of 2022 until mid-2023. This will test the CBDC in cash-like activities such as paying for goods. Meanwhile, the second track — or the “Innovation track” — aims to emphasize innovative use cases for CBDC.

The central bank of Thailand expects the pilot to last for two years. “The BOT will assess the benefits and associated risks from the Pilot to formulate related policies and improve the CBDC design in the future,” it disclosed on Friday.

Source: CoinTelegraph