ConsenSys Case Studies Reserve Bank of Australia's Exploration of Central Bank Digital Currency with Partners

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	Reserve Bank of Australia's Exploration of Central Bank Digital Currency with Partners ConsenSys

Reserve Bank of Australia's Exploration of Central Bank Digital Currency with Partners

ConsenSys

Technology Category	Application Infrastructure & Middleware - Blockchain Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries	Finance & Insurance
Challenge	The Reserve Bank of Australia (RBA) is keen to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). The challenge lies in the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement, and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform. The RBA aims to understand the implications of 'atomic' delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenised CBDC and financial assets. Read More
About Customer	The customer in this case is the Reserve Bank of Australia, the country's central bank. The RBA conducts monetary policy, works to maintain a strong financial system and issues the nation's banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves. Through this project, the RBA is seeking to explore the potential use and implications of a wholesale form of central bank digital currency using distributed ledger technology. Read More
Solution	To address this challenge, the RBA has partnered with Commonwealth Bank of Australia, National Australia Bank, Australia-based financial services firm, Perpetual, and Consensys. The project will be delivered in the coming months and is expected to be completed around the end of 2020. Consensys, a leader in developing blockchain-based solutions, will lead the implementation of this transformational industry project by leveraging its technical expertise and its digital assets product stack, comprising Consensys Quorum, Codefi Assets, and Codefi Orchestrate. These tools will be instrumental in streamlining record and document management, settlement, servicing and payments. The parties intend to publish a report on the project and its main findings during the first half of 2021. Read More Log in to view content
Contents

Technology Category

Application Infrastructure & Middleware - Blockchain

Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Finance & Insurance

Challenge

The Reserve Bank of Australia (RBA) is keen to explore the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). The challenge lies in the development of a proof-of-concept (POC) for the issuance of a tokenised form of CBDC that can be used by wholesale market participants for the funding, settlement, and repayment of a tokenised syndicated loan on an Ethereum-based DLT platform. The RBA aims to understand the implications of 'atomic' delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenised CBDC and financial assets.

About Customer

The customer in this case is the Reserve Bank of Australia, the country's central bank. The RBA conducts monetary policy, works to maintain a strong financial system and issues the nation's banknotes. The RBA provides certain banking services as required to the Australian Government and its agencies, and to a number of overseas central banks and official institutions. Additionally, it manages Australia's gold and foreign exchange reserves. Through this project, the RBA is seeking to explore the potential use and implications of a wholesale form of central bank digital currency using distributed ledger technology.

Solution

To address this challenge, the RBA has partnered with Commonwealth Bank of Australia, National Australia Bank, Australia-based financial services firm, Perpetual, and Consensys. The project will be delivered in the coming months and is expected to be completed around the end of 2020. Consensys, a leader in developing blockchain-based solutions, will lead the implementation of this transformational industry project by leveraging its technical expertise and its digital assets product stack, comprising Consensys Quorum, Codefi Assets, and Codefi Orchestrate. These tools will be instrumental in streamlining record and document management, settlement, servicing and payments. The parties intend to publish a report on the project and its main findings during the first half of 2021.

Impact #1	The operational results of this project are not yet available as the project is still ongoing. However, the project is expected to provide significant insights into the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). The proof-of-concept being developed will explore the implications of 'atomic' delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenised CBDC and financial assets. These insights will be valuable in shaping the future of digital currency in Australia and potentially worldwide.

Impact #1

The operational results of this project are not yet available as the project is still ongoing. However, the project is expected to provide significant insights into the potential use and implications of a wholesale form of central bank digital currency (CBDC) using distributed ledger technology (DLT). The proof-of-concept being developed will explore the implications of 'atomic' delivery-versus-payment settlement on a DLT platform as well as other potential programmability and automation features of tokenised CBDC and financial assets. These insights will be valuable in shaping the future of digital currency in Australia and potentially worldwide.

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Overview

Reserve Bank of Australia's Exploration of Central Bank Digital Currency with Partners

Operational Impact