Australia and ConsenSys work on Ethereum-based CBDC project

The Reserve Bank of Australia (RBA) announced its partnership with Commonwealth Bank, National Australian Bank, Perpetual and ConsenSys Software, a blockchain technology company, on a project which involves issuing CBDC encryption that can be used by wholesale market participants on a Ethereum-based DLT platform. The project aims to offer crypto syndicated loans on the DTL platform to be executed on the Ethereum network. The project is scheduled for completion by the end of the year, and findings will be released early next year. The RBA has changed its stance and now supports CBDC development as the Chinese digital yuan has reached maturity and been deployed on a limited basis.

Why it matters: There is no doubt that CBDCs are going to hit the markets, but there is little in the way of details on how people will use them at-scale. The idea that a CBDC is new simply isn't true, as fiat currency has been digital for a very long time. There is a good chance that most major nations will have a CBDC in the coming years, and this may cause issues with the legacy currency that most people are using at the moment. It also remains to be seen if people will accept a CBDC unless it is heavily incentivized. Regardless, it would appear that central banks are going to roll out CBDCs, and people all around the world will use them.