He Reserve Bank of Australia (RBA) announced that it will not make any decision on a Central Bank Digital Currency (CBDC) for a few years due to various unsolved problems that arose at the end of pilot project launched by the body.
«Given the many issues that still need to be resolved, it is likely that any decision on a CBDC in Australia,» he explained in his report.
In his final conclusions, the central bank focused on the need for further research related to legal, regulatory, technical and operational issues.
In this sense, it has indicated that cryptographic keys were required to carry out actions in the CBDC Pilot Platform, but «finding affordable and adequately secure solutions for key management was a challenge for companies that did not have the ability to operate on other DLT networks.»
In addition, he believes that integrating a CBDC platform with applications of use cases of the industry it was challenging and this has implications for possible deployment models.
«The design decisions required to effectively support the variety of privacy and data sharing needs are challenging, and the technologies to implement those requirements in a single CBDC platform they are also complex, which warrants further investigation,» he said in his report.
However, the RBA has also detailed that a Australian CBDC could endorse electronic payments and «allow ‘smarter’ payments» or complex transactions that would be cheaper and less risky.
Likewise, he believes that a CBDC can support the financial innovation in areas such as debt securities markets, it could promote innovation in emerging private digital money sectors and enhance resilience and inclusiveness within the broader digital economy.
A «CBDC could be seen as an enabling complement, rather than a substitute, for private sector innovation,» the report concludes.