Australian Reserve Bank (RBA) recently revealed that it simulated the use of central bank digital currency (CBDC) in a wholesale payment system based on the Ethereum network, with interesting results.
RBA investigates the possibility of a Central Bank Digital Currency
Recently, the RBA revealed that it has decided to simulate the use of a CBDC in a wholesale payments system. Their plan was to see whether a system where banks settle customer payments between themselves would be able to operate on a permissioned Ethereum-based network.
As many likely knows, a number of central banks recently started experimenting with digital currencies, with hopes of creating a working system that would soften the impact of Facebook’s Libra. However, with Libra facing regulatory issues, central banks are advancing with their own plans.
They still are not convinced that cryptocurrencies such as Bitcoin offer a real alternative to traditional money, however, they do appear to see the value in shifting towards digital money.
As the central banks of…