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RBA seeks feedback on digital money's role in Australian asset markets

The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) have released a consultation paper titled Project Acacia, which aims to gather industry feedback on digital money's role in wholesale tokenised asset markets in Australia. This initiative follows the roadmap outlined in a recent joint RBA-Treasury paper and related discussions about central bank digital currency (CBDC) and digital money's future in the country.

The paper invites industry expressions of interest for participation in an experimental research phase of Project Acacia and membership in an Industry Advisory Group. The RBA and DFCRC are seeking input on technical and functional capabilities of new settlement infrastructure forms, such as wholesale CBDC and tokenised bank deposits, which could support well-functioning tokenised asset markets while maintaining financial system stability. Interested parties should respond by Wednesday, December 11, 2024, via projectacacia@rba.gov.au.

Brad Jones, Assistant Governor (Financial System) at the RBA stated, "Shaping the future of money in Australia is a strategic priority of the RBA and the Payments System Board. The RBA, alongside the DFCRC, are seeking to engage with industry partners on Project Acacia to examine how innovation in wholesale markets could be enabled by new forms of digital money and supporting infrastructure." He emphasized that understanding how tokenised asset markets can enhance efficiency and resilience in wholesale payments, settlements, and cross-border transactions is a key area of interest. Jones added that their overarching aim is to address how financial system innovation can best support Australia's economy during this digital era.

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