October 21, 2021

CBDC: Reserved Bank of Australia Set to Hire Digital Currency Specialist

Cryptocurrency is currently receiving serious attention from several countries globally even as plans are underway to integrate it fully into global financial systems. Most nations of the world have been working on strategies for the development of CBDC. Australia on its part is not left out in this global development as it has made an advertisement for a specialist in digital currency. This announcement was made by the Reserved Bank of Australia revealing the need for this specialist to further deliberations on CBDC and its development. It is in line with the RBA’s commitment and strategic plan to strengthen and support the country’s payment system and its development. 

The RBA has been researching CBDC for the past two years and since then it has been bent on improving its research team on CBDC. This new position would further the agency’s research on the creation and adoption of a digital currency for its citizens and a legal tender for payments and settlements of debts within the country. The RBA is also working to see how CBDC can be designed and tailored to meet the needs of citizens of the country and be beneficial to them. For the RBA, the first step in making this happen is to create a team spanning across different disciplines that will be tasked with the responsibility of designing and implementing all developments relating to the CBDC project.

This will, in turn, give regulators and regulatory bodies a better understanding of the CBDC and its implications in the finance system. Just recently, BIS alerted central banks of different countries to begin work on CBDC to meet up with the rapid growth of cryptocurrency presently. By the actions of the RBA, Australia will be among the first countries to begin the development of a digital asset for the country. 

CBDC And Its Global Development

The rapid spread and expansion of cryptocurrency have caused most countries to begin working towards creating CBDC.  About fifty-eight countries are making progress on the project much to the delight of the crypto investors. According to reports, China and the United States have plans to launch their own CBDC very soon as work on it has been steadily going on. The two countries are planning to launch a digital form of their national currencies which would be controlled and supervised by their respective central banks. 

CBDC And Bitcoin

The introduction and adoption of CBDCs would mean that countries would transit from centralized and decentralized cryptocurrencies to central bank-controlled digital assets. This development might have an unfavorable impact on Bitcoin and other crypto platforms. 

Presently, CBDC is preferred to other cryptos because it is less volatile than Bitcoin and most cryptos. Thus, the risks involved with CBDC are reduced and less. Furthermore, with CBDC, it is easy to prevent digital assets from being used for illegal activities such as terrorist financing, money laundering, and so on. This is a new phase of cryptocurrency which the world is about to launch into.