Australia Central Bank Tests Digital Currency with Major Banks in Collaborative Trial

Australia’s central bank is moving forward with exploring digital currencies, launching a trial to test stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency (CBDC) in collaboration with various partners. The trial, known as Project Acacia, will involve testing 24 use cases over six months, with results expected in early 2026.

Major Australian banks, including Commonwealth Bank, ANZ, and Westpac Banking Corporation, are participating in the trial. Commonwealth Bank is focusing on evaluating digital currencies and collateral records in the repo market, while ANZ is leading the testing of tokenized trade payables and fixed-income use cases utilizing a wholesale CBDC.

Regulators in Australia, specifically the Australian Securities and Investments Commission (ASIC), have granted participants relief from certain regulations to trial assets outside existing laws. ASIC Commissioner Kate O’Rourke sees potential in the technology underlying digital assets for wholesale markets, allowing for exploration of opportunities and risk identification.

Australia’s government, under the Labor Party, has proposed a new crypto regulatory framework to regulate exchanges under existing financial services laws. Additionally, the government is collaborating with major banks to understand the impact of de-banking. Industry consultations have been initiated to draft a comprehensive crypto regulatory framework, signaling a proactive approach to cryptocurrency regulation in Australia.

Read more at Cointelegraph: Australia Banks Join Digital Currency Trial for Tokenized Assets