Reserved Bank is announcing that they will be partnering with some banks in Australia such as Commonwealth Bank, National Australia Bank, Perpetual, and ConsenSys Software. They explore the potential use of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT).
The project involves proof-of-concept (POC) for the issuance of a tokenized form of CBDC that can be used by wholesale market participants for the funding, settlement, and repayment of a tokenized syndicated loan on an Ethereum-based DLT platform. They try to also explore the implications of a CBDC for efficiency, risk management, and innovation in wholesale financial market transactions. Though this remains an open question, they are collaborating with industry partners to explore if there is a future role for a wholesale CBDC in the Australian payments system. The POC will be used to explore the implications of ‘atomic’ delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenized CBDC and financial assets.
The Central banks seem to be setting themselves to exit the current monetary system.
The holders of cash; A$ fiat currency will see a major erosion of the value. Holders of assets, especially income-producing assets, will see protection, or an increase in their value.
The project is expected to be completed around the end of 2020 and the parties intend to publish a report on the project and its main findings during the first half of 2021.
Australia is not alone, The IMF and China are gearing up new global digital currencies to attack the USD reserve currency status. Will this be good for average people? Maybe the current monetary system is about to collapse anyway?
Keep in mind, if this sounds confusing, and you don’t know who will be disadvantaged by the central bank digital currency- well then it’s you who will be disadvantaged. Invest; buy Gold, buy bitcoin, buy income-producing real estate. Don’t hold cash!