Australia has always been a crucial region for cryptocurrency adoption. It now appears that the Reserve Bank in the country will focus on its own CBDC to thwart the Libra threat.
There have been plenty of rumors regarding central banks issuing their own currency or asset.
More CBDCs are Being Researched
These central bank digital currencies may show up in China and some parts of Europe over the next few years.
In Australia, similar rumors are starting to pop up this week.
Sources claim that the Reserve Bank of Australia is conducting “major trials” for CBDCs.
It also appears that the bank wants to leverage ethereum technology to issue a currency.
Do keep in mind this would be a private and permissioned version of the ethereum blockchain.
By conducting simulations regarding CBDCs, the bank seems rather intent on exploring this option in the near future.
Such a system can provide significant advantages compared to current solutions.
The improvements in both speed and cost reduction cannot be ignored.
As banks struggle to make a profit to remain afloat, any cost-cutting measure will be embraced sooner or later.
For now, the Reserve Bank will extend its research into CBDc throughout 2020.
They will also explore the option of collaborating with an external partner.