Central banks in Canada and Australia have shifted focus away from retail CBDCs. Australia is working on wholesale CBDCs, citing modest retail benefits. Future revisions are possible as CBDC tech and finance evolve.
Interest in retail central bank digital currencies (CBDCs) is gaining momentum as central banks in Canada and Australia shift their focus to other priorities.
The Reserve Bank of Australia (RBA) has decided to prioritize wholesale CBDC work over retail applications, citing modest benefits in the retail sector.
“The potential benefits of retail CBDC generally appear modest or uncertain relative to the challenges it introduces.” Said Brad Jones, Assistant Governor at the RBA.
The Australian central bank is focusing on wholesale applications, which offer improved efficiency and reduced operational risks compared to retail versions.
The Central Bank of Canada also confirmed it recently retreat From plans to introduce a digital version of the Canadian dollar, it decided to focus on policy research related to emerging payment systems.
The Bank of Canada initially explored retail CBDC in response to digitization and changing consumer habits.
However, after several years of research, the central bank has cooled its enthusiasm, stating that the digital loonie does not currently offer significant benefits.
This indicates a growing consensus among central banks that the challenges of retail CBDCs may not be worth the investment at this time.
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Central banks may reconsider these views as the financial sector and CBDC technology evolve in the future,
For now, they appear to be content focused on wholesale solutions that directly affect financial institutions rather than everyday consumers.
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