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<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/australias-central-bank-prioritizes-wholesale-digital-currency-to-secure-financial-stability/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Australia’s Central Bank Prioritizes Wholesale Digital Currency to Secure Financial Stability</a><br></p>
<p style="text-align: justify">Australia’s central bank, alongside its banknote distribution authority, continues its initiatives regarding central bank digital currency (CBDC) and digital money.</p>
<h2 id="focus-on-wholesale-cbdc">Focus on Wholesale CBDC</h2>
<p style="text-align: justify">Brad Jones, Deputy Governor of the Reserve Bank of Australia (RBA), indicated that the bank’s agenda on digital money will concentrate on wholesale CBDC used by banks and other financial institutions rather than individual CBDC for the general public.</p>
<blockquote>
 <p>“I can confirm that the RBA has made a strategic commitment to prioritize wholesale digital money and infrastructure, including wholesale CBDC, instead of individual CBDC.”</p>
</blockquote>
<p style="text-align: justify">Jones emphasized that wholesale CBDC offers greater economic benefits and fewer challenges. He also noted that institutional CBDC represents an evolution in monetary regulation rather than a revolution.</p>
<h2 id="economic-benefits-and-stability">Economic Benefits and Stability</h2>
<p style="text-align: justify">According to Jones, institutional CBDC acknowledges the stabilizing role of central bank money in settling wholesale market transactions, particularly in markets of systemic importance. This point is also underscored in international standards.</p>
<p style="text-align: justify">He mentioned that the RBA’s most immediate priority in its three-year applied research program on the future of digital money is to launch a new project focused on institutional CBDC and tokenized commercial bank deposits.</p>
<h2 id="less-need-for-retail-cbdc">Less Need for Retail CBDC</h2>
<p style="text-align: justify">Jones stated that the potential benefits of CBDC for individuals currently appear weak in Australia. He pointed out that individual CBDC could create significant challenges for financial stability and the implementation of monetary policy.</p>
<blockquote>
 <p>“Since the potential benefits of CBDC for individuals currently seem weak and pose significant challenges, we see no strong public policy justification for issuing such a CBDC.”</p>
</blockquote>
<p style="text-align: justify">The RBA’s focus on wholesale CBDC reflects a strategic approach aimed at enhancing the efficiency and stability of the financial system. This move represents a balanced transition toward evaluating the potential of digital currency while safeguarding the existing financial structure.</p>
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Australia’s Central Bank Prioritizes Wholesale Digital Currency to Secure Financial Stability

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