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China bares CBDC upgrade; Australia’s Project Acacia underway

Author: Content Editor
China and Australia are making efforts to advance their central bank digital currencies (CBDCs) and drive adoption. The People's Bank of China (PBoC) has introduced an upgraded digital yuan hardware wallet that features QR codes and NFC technology to improve usability for tourists and less tech-savvy residents. The hardware wallet is similar to a debit card, and users can make no-contact payments at point-of-sale devices using NFC capabilities. The PBoC aims to target residents without internet access and traditional financial services. Meanwhile, the Reserve Bank of Australia (RBA) is proceeding with a study on asset tokenization in the financial system. Dubbed Project Acacia, the study will explore the role of privately issued digital currencies and CBDCs in improving the tokenized asset market. The RBA is seeking input from ecosystem players to participate in the study, which will focus on third-party blockchain networks for issuance. The study aims to examine the potential of tokenized asset markets in improving the efficiency and resilience of wholesale payments and cross-border payments. However, experts suggest that central banks should be cautious about issuing wholesale CBDCs on third-party architecture, as this may reduce the powers of banking regulators in controlling monetary policy.

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