The Reserve Bank of Australia (RBA) has announced its plan to launch the second phase of Project Acacia. This project will test the use of stablecoins and central bank digital currencies (CBDCs) in real situations. This is a crucial step in Australia’s digital finance journey, as the country seeks to explore how digital currencies can integrate into the financial system. RBA Project to Test Stablecoins and CBDCs Notably, the RBA is focusing on wholesale finance, where digital currencies could improve transaction efficiency, lower settlement risks, and increase transparency. Phase Two of Acacia will evaluate practical uses in areas such as trading tokenized assets, cross-border payments, and instant settlement systems using blockchain and distributed ledger technology (DLT). To encourage innovation during this experimental phase, the Australian Securities and Investments Commission (ASIC) has granted temporary regulatory exemptions to participating entities. This will enable financial institutions and fintech firms to test new uses for digital assets that do not fit within the current legal and regulatory rules. Some major players participating in the pilot program include Commonwealth Bank, Westpac, and ANZ, among others. Meanwhile, the move comes amid a global trend of stablecoin adoption. Likewise, central banks and regulators are increasingly seeing the benefits of digital currencies. Crypto Adoption and Government Commitment Rising Australia’s crypto ownership is on the rise , with 31% of adults, or around 6.2 million people, having owned digital assets at some point. According to data from Independent Reserve, this figure is up 28% from last year. Edward Carroll of MHC Digital Group highlighted Charlton’s understanding of blockchain’s transformative potential and the urgency of crafting clear regulations . Meanwhile, Damian Kassabgi of the Tech Council of Australia said the addition of “digital economy” to Charlton’s title signals strong governmental support for the sector’s role in economic growth. Furthermore, the Australian Transaction Reports and Analysis Center (AUSTRAC) announced that it will shift its enforcement priorities toward crypto in 2025. RBA Prioritizes Wholesale CBDC Recall that the Reserve Bank of Australia confirmed it would not be pursuing a retail CBDC . The bank affirmed that it will channel its resources into developing a wholesale CBDC. The decision to focus on wholesale CBDC comes after extensive research concluded that a retail version would not deliver significant innovation for public use. On the other hand, a wholesale CBDC offers a range of advantages for commercial and central banks. It reduces counterparty risks, enhances liquidity, increases transparency, and has the potential to lower operational and compliance costs. The post Reserve Bank of Australia Launches CBDC Phase Two Testing appeared first on TheCoinrise.com .
