Australia’s central bank has partnered with Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), investment group Perpetual, and blockchain firm ConsenSys.
Together, the five entities will research the potential use cases and implications of a central bank digital currency (CBDC) using Ethereum-based distributed ledger technology (DLT).
Ethereum has gas fees – that is, the Ethereum blockchain charges people to transact on it. The Reserve Bank of Australia (RBA) has not explained why it prefers Ethereum, a technology also used heavily in the trade space.
The RBA says the research-based project is part of its ongoing efforts around CBDC. That’s despite the central bank saying just two months earlier that there wasn’t a strong policy case for issuing a CBDC.
This newly announced project will finish before year-end. The bank plans to digest it into a report for issuance next year.