Australia to test CBDCs, stablecoins in next stage

Australia is advancing its exploration of digital currencies by entering the next phase of testing Central Bank Digital Currencies (CBDCs) and stablecoins through Project Acacia, a collaborative initiative led by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). This six-month pilot involves major banks, including ANZ, and focuses on innovative use cases.

Project Acacia aims to assess how wholesale CBDC (wCBDC) and tokenised assets can automate settlements, reduce credit and liquidity risks, and unlock new business models by leveraging blockchain and distributed ledger technology.

The trial will also explore different settlement models, including tokenised deposits and stablecoins, although stablecoins are not the primary settlement asset under consideration.

This initiative reflects Australia's cautious but proactive approach to digital money, prioritizing wholesale applications over retail CBDCs for now. The RBA continues to rule out a retail eAUD but is committed to understanding how digital currencies can support the future financial infrastructure, improve cross-border payments, and maintain financial stability.

The pilot will run through early 2026, testing platforms with regulatory support from agencies. The project also aligns with Australia's broader goal to finalize a stablecoin regulatory framework, ensuring clarity for investors and mitigating risks while fostering innovation in the digital asset space.

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