Australia’s Central Bank Tests Digital Money and tokenized Settlements
Australia’s Reserve Bank is taking a big step in testing digital money and tokenized settlements. They’ve launched a pilot program called Project Acacia, which aims to explore how digital currencies can improve financial markets.
project Acacia, a collaboration with the Digital Finance Cooperative Research Center, has chosen 24 use cases for testing. These include 19 real-world scenarios and five simulations. The project will examine stablecoins, tokenized bank deposits, and a wholesale central bank digital currency (CBDC).
These tests will cover various asset types like fixed income, private markets, trade receivables, and carbon credits. Brad Jones, Assistant Governor at the RBA, said, “This project will help us understand how digital money innovations can boost Australia’s wholesale financial markets.”
The RBA will issue pilot CBDCs on platforms like Redbelly Network, Hedera, and R3 Corda.Participants include fintech firms and major banks such as ANZ, Commonwealth Bank, and Westpac. The Australian Securities and Investments Commission has given regulatory relief to participants, allowing them to conduct transactions outside current frameworks.
The trials will run for six months, with results due in Q1 2026.
Project Acacia aligns with the federal government’s digital asset strategy, aiming to foster innovation in Australia’s financial system. this initiative could lead to more efficient and resilient financial markets.
