Australia recently went through a massive economic reform, and the country’s reserve bank has now released a report on the various stages of development. The report from the Australian Reserve Bank is titled ‘Project Atom’, and it has carefully analyzed the pros and cons of CBDCs, distributed ledger technology (DLT), and cryptocurrencies. According to the report, CBDCs and the DLT will give a huge boost to the national economy, taking them to the list of countries with a powerful digital asset ecosystem.
The Commonwealth Bank of Australia (CBA), National Australia Bank (NAB), Perpetual, and ConsenSys worked on Project Atom for more than two years. They studied market trends, technical innovations, regulatory loopholes, and a bunch of other factors. Michele Bullock, Reserve Bank of Australia’s assistant governor, said that the report unveils the potential of wholesale CBDC rollout. At a time when countries around the world are planning and preparing their digital currencies, it gives a boost to Australia to work on their own. Most countries with CBDCs have only worked with retail CBDCs. Unlike wholesale CBDCs, retail CBDCs cannot settle interbank transfers and transactions between official institutions.
CBDCs have the potential to transform the way money transactions take place. It will be especially beneficial in cross-border payments. At the same time, governments need to come to a mutual agreement to facilitate CBDC payments. With more and more countries rolling out digital versions of their national currencies, a global payment ecosystem might not be far away.