Australia’s central bank is taking the next big step in its digital currency venture.
On Thursday, the Reserve Bank of Australia (RBA) announced it’s starting a new trial to see how digital money and tokenization can improve the way financial markets work.
This is the second phase of what’s called “Project Acacia,” a joint effort between the RBA and the Digital Finance Cooperative Research Centre that first began in November last year.
In this phase, the trial will involve different types of digital money, like stablecoins, tokenized bank deposits, and a special wholesale central bank digital currency (CBDC). These will be tested by select partners, which include both major banks and local fintech companies.
Together, they’ll try out 24 different real-world use cases. Nineteen of them will involve actual money, while five will be simulated just to explore how the technology works, with a goal to better understand how digital currencies could make financial systems more efficient and future-ready.
How does it work?
The next phase of Australia’s digital currency trial will test how new technologies can improve different parts of the financial system, including bonds, private investments, trade invoices, and carbon credits. It will also explore new ways to use central bank accounts.
The six-month pilot, set to wrap up in early 2026, includes major players like Commonwealth Bank, ANZ, and Westpac. Commonwealth Bank is working with JPMorgan to explore how digital currencies and blockchain-based records could make short-term lending markets faster, safer, and more efficient.
These markets are key to managing the flow of money in the economy, and experts say they’re a perfect place to begin testing the real-world impact of digital finance.
Regulators Ease Rules to Support Crypto Trials
The Australian Securities and Investments Commission (ASIC) is giving the green light for the digital currency trial by easing particular rules. This allows participants to test digital assets that currently fall outside the country’s laws, according to the Reserve Bank.
ASIC Commissioner Kate O’Rourke said,
“The agency sees real potential for blockchain and digital asset technology in large-scale financial markets. By relaxing certain regulations, ASIC hopes to let companies safely explore the benefits of these tools while also identifying any risks.”
Meanwhile, the Australian government is working on a new crypto rulebook that would bring digital currency exchanges under existing financial laws. It’s also partnering with the country’s biggest banks to better understand the ongoing issue of “de-banking,” where crypto-related businesses are denied access to traditional banking services. This follows a series of public consultations that started in 2022 to help shape the country’s future crypto policies.