The Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC) have released their findings from a joint research project involving industry that explored potential use cases for a central bank digital currency (CBDC) in Australia.

The pilot CBDC has been used by selected industry participants to demonstrate how a potential digital Australian dollar, the eAUD, could be used to provide innovative payment and settlement services to Australian households and businesses. 

The result identified four key areas in which a CBDC could improve the financial system: enabling 'smarter' payments, supporting financial market innovation, promoting private digital money innovation, and enhancing resilience and inclusion in the digital economy.

Alongside the findings, the central bank stated more research is required to deal with legal, regulatory, technical and operational issues to ensure the eAUD operates safely.