The pilot is expected to take about a year to complete, developing a limited-scale CBDC in a ring-fenced environment where the currency nonetheless has a real claim on the Reserve Bank.
“The project will also be an opportunity to further understanding of some of the technological, legal and regulatory considerations associated with a CBDC,” the RBA said.
That means that unlike popular cryptocurrencies such as Bitcoin and Ether, the RBA-issued CBDC will have the same validity as cash.
“Interested industry participants will be invited to develop specific use cases that demonstrate how a CBDC could be used to provide innovative and value-added payment and settlement services to households and businesses,” the RBA said in a statement.
“The Bank and the DFCRC will select a range of different use cases to participate in the pilot, based on their potential to provide insights into the possible benefits of a CBDC.”
A report on the findings from the project will result, with the findings shaping ongoing research into the desirability and feasibility of a CBDC in Australia.