The project’s key objectives are to understand and identify innovative business models, use case, benefits, risks, as well as operational models for a CBDC within Australia. The Reserve Bank of Australia (RBA), which made it onto the list of countries who intend to launch an internal central bank digital currency (CBDC), released a white paper outlining a detailed plan to conduct a pilot project for eAUD.
The RBA announced on Aug. 9, 2022 that it was collaborating with the Digital Finance Cooperative Research Centre to investigate CBDC use cases in Australia. A joint research led to the creation of a pilot CBDC for general use. As explained in the white paper ‘Australian CBDC Pilot to Digital Finance Innovation’:
The project’s key objectives are to identify and understand new business models, use cases and benefits, as well as operational models for a CBDC (CBDC) in Australia.
The White paper which you can find here outlines in detail the plan for the eAUD CBDC
Based on the indicative project timelines shown below, the report on Australia’s CBDC Pilot Project is expected to be published in mid-2023.
The RBA, as a central bank will issue eAUD. While the DFCRC will supervise the development and implementation of the eAUD platform, the DFCRC will act as the DFCRC. Once the pilot is approved for implementation, industry participants may join the pilot as case providers.
The whitepaper suggests that Ethereum (ETH),-based private, permissive instances be used. RBA clarifies that pilot participants will be responsible for their own costs in the design, development, implementation, and piloting of use case concepts, if they are selected.
Australia’s ministerial Treasury asked the public to give their opinions on taxing cryptocurrency. Stephen Jones, Assistant Treasurer, revealed that crypto assets would not be taxed as foreign currencies.
Australian investors had a window of 25 day to voice their opinions on the decision. This window expires Sept. 30, and will be closed in the next four days. If the legislation is signed into law, it will change the definition of digital currency in Goods and Services Tax Act (GST Act) to exclude it from being a foreign asset.