Australia’s central bank seeks feedback on wholesale CBDC, tokenized markets

The Reserve Bank of Australia has launched a consultation on Project Acacia, which is exploring wholesale central bank digital currency and tokenized asset markets.

Australia’s central bank, the Reserve Bank of Australia, is seeking public feedback on Project Acacia, a three-year initiative exploring the benefits of tokenizing assets and using CBDC for payments in conjunction with the Digital Finance Cooperative Research Centre.

In a press release on 8 November, the RBA stated that the consultation paper was seeking interest from industry participants in the “experimental research phase” of Project Acacia and joining an Industry Advisory Group for the project. The central bank is also seeking feedback on the technical and functional capabilities of new settlement infrastructure and digital money, including “wholesale CBDC and tokenized bank deposits,” as stated in the press release.

Brad Jones, deputy governor of the RBA, highlighted the potential of tokenized markets, stating that they could play a significant role in “increasing the efficiency and flexibility of wholesale settlements and settlements and enhancing cross-border payments”. The central bank invited interested parties to submit their feedback by December 11.

What is the Akasya Project?

Project Acacia was introduced by the RBA and DFCRC in September to examine how digital currencies, including wholesale CBDC, could support tokenized asset markets. The project will focus on the settlement of tokenized assets using a CBDC and the infrastructure required for this process.

It is assumed that the project could save Australia’s financial markets up to $4 billion annually by tokenizing assets and facilitating their payments through a government-backed digital currency. The project is also exploring the potential of wholesale CBDC to increase cross-border payments by reducing dependence on intermediaries and lowering costs.