In a recent statement, Brad Jones, assistant governor for the financial system at the Reserve Bank of Australia (RBA), announced a strategic shift towards prioritizing wholesale digital money and infrastructure, specifically wholesale Central Bank Digital Currency (CBDC).
According to Jones, the RBA sees more potential benefits and fewer challenges with wholesale CBDC compared to retail CBDC at this time. This marks a significant development in the RBA’s approach to digital currencies and reflects a growing interest in the potential of wholesale CBDCs.
Wholesale CBDCs are digital currencies issued by central banks for use by financial institutions and other wholesale market participants. They differ from retail CBDCs, which are designed for use by the general public.
The RBA’s focus on wholesale digital money and infrastructure signals a proactive approach to exploring the opportunities and challenges associated with CBDCs. By prioritizing this area of work, the RBA aims to stay at the forefront of developments in the digital currency space and ensure that Australia is well-positioned to benefit from the potential of wholesale CBDCs.
