Australia's Central Bank Advances Acacia Project to Explore Digital Assets

Australia’s central bank, the Reserve Bank of Australia (RBA), has officially launched Phase 2 of Project Acacia, marking a significant step toward testing a wholesale central bank digital currency (CBDC) and the integration of digital assets into the Australian financial system.

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🧪 What’s Happening in Project Acacia – Phase 2

Scope & Timeline

Phase 2 (mid‑2025 to early 2026) will test 24 innovative use cases—19 involving real money and assets, and 5 proof‑of‑concept trials using simulated transactions .

Settlement Assets Under Trial

These include pilot wholesale CBDC, stablecoins, bank-deposit tokens, and traditional commercial bank deposits via existing RBA exchange settlement accounts .

Use Cases & Asset Types

The trials span multiple asset classes: fixed income, private markets, trade receivables, carbon credits, and more . Representatives include major financial players like the Commonwealth Bank, ANZ, Westpac, Australian Bond Exchange, Fireblocks, Canvas, Catena, Northern Trust, and JPMorgan (via CBA) .

Technology Partners

A multi-DLT approach ensures interoperability and innovation, involving Hedera, Redbelly Network, R3 Corda, Canvas Connect, and EVM-compatible platforms .

Regulatory Relief from ASIC

ASIC has provided temporary regulatory relief enabling live transactions in these trials, designed to ensure responsible experimentation .

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🎯 Why It Matters

1. Wholesale‑First Strategy

The RBA is focusing on wholesale markets rather than consumer-facing digital currency, citing greater economic benefits and lower risk .

2. Efficiency & Risk Reduction

CBDC and tokenised settlement could reduce counterparty and operational risks, lower transaction costs, free up collateral, and enhance transparency and auditability .