Australian Central Bank Use XRPL For CBDC Project Development

Australia developed a digital currency using XRP Ledger. (Photo; Doc. Unsplash)

JAKARTA A number of central banks from various countries are starting to seriously develop central bank digital currencies or CBDCs. The latest report states that Australia's central bank, Reserve Bank of Australia (RBA), does not want to be left behind in this digital currency innovation.

RBA recently released a whitepaper entitled Australian CBDClot for Digital Financial Innovation. In the white paper, the central bank announced that the Australian central bank digital currency pilot project, eAUD, will be led by former Ripple officials, Dilip Rao.

Rao will serve as director of the Australian CBDC project program. Previously, he had contributed to the development of Ripple's XRP Ledger (XRPL). XRPL itself is a decentralized open-source blockchain for the banking and financial markets. Rao believes that the XRPL-based real-time settlement system can be used in CBDCs.

The reason is, XRPL presents transaction speeds, is efficient, energy efficient, and reliable to provide a strong open-source foundation for working on the eAUD digital money project.

In the development of the digital money, RBA collaborated with the Digital Finance Research Center (DFCRC) for a research program worth USD 180 million over 10 years. The funds come from industry partners, universities, and the Australian government for the CBDC pilot project.

The main aim of implementing this pilot project is to identify use cases and understand aspects of technology, law, and regulations from the CBDC eAUD.

In addition, the RBA also invited industry participants to submit a use case that would benefit Australia's economy and financial system no later than October 31. The DFCRC said that at least 12 use cases would be selected for further research on December 31. In addition, trials of use cases will begin on January 1, and the final report will be presented on June 30 next year.

All proposals for use cases submitted by industry participants will be used to inform the assessment of the basic concept for the Australian CBDC. A limited number of use cases will also be selected to be operated in the CBDC pilot project infrastructure.

Every interesting use case whether called a 'grosir' or'retail' will be explored in this project, the caption reads in the whitepaper, quoted from DailyCoin.