Australia Shifts Focus to Wholesale CBDC, Leaving Retail Options Behind

Australia's central bank has decided to prioritize the development of a wholesale central bank digital currency (CBDC) over a retail version.

This shift was announced by Brad Jones, the Reserve Bank of Australia’s Financial System Assistant Governor, during a fintech conference in Melbourne.

A retail CBDC would be used by the general public for everyday transactions, while a wholesale CBDC would facilitate transactions between banks and financial institutions, such as cross-border payments.

Jones noted that the economic benefits and challenges associated with a wholesale CBDC appear more favorable compared to a retail option, which might cause issues like higher borrowing costs and complicate monetary policy.

READ MORE:

Revolut to Launch Its Own Stablecoin as It Expands Crypto Services

The Reserve Bank of Australia is also embarking on a three-year research initiative called Project Acacia. This project will explore the future of digital money, focusing on tokenized commercial bank deposits and advancements in blockchain technology, such as programmable and atomic settlement capabilities.

This new direction follows Australia’s earlier CBDC pilot program, which included collaborations with firms like Mastercard and ANZ. While many central banks are exploring CBDCs, most are leaning towards wholesale implementations rather than retail ones.

Currently, only a few countries, including the Bahamas and Nigeria, have introduced retail CBDCs to the public.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.