Australia Carries On Testing a Digital Currency and Stable Coins
Australia has launched a pilot program for its newest digital currency initiative. The focus of this program will be CBDCs, stablecoins, and tokenized bank deposits in wholesale finance.
The second phase of Project Acacia will be carried out by the RBA in partnership with the Digital Finance CRC. The trial, which was announced on 11 July 2025, aims to demonstrate how digital money and blockchain tokenization can enhance efficiency, transparency, and risk management.
What the Trial Involves
A six-month experiment has been conducted covering 24 use cases—19 of which are live transactions with real money, and 5 are proof of concept simulations. Big Australian banks, fintech startups, and blockchain platforms are participating. Applications include fixed income, the private market, trade receivables, carbon credits, and CBAs.
Australia’s public appraisal of a multi-platform blockchain solution is demonstrated by the pilot’s use of Hedera, Redbelly, R3 Corda, and Canvas Connect.
The pilot results are expected in early 2026 to determine how next-generation financial infrastructure can be deployed at scale.
Major Banks On Board
ANZ, CBA, and Westpac, which are part of the “big four” banks of Australia, are actively involved in the experiment.
CBA and JPMorgan are exploring the repo market, evaluating how digital assets and real-time collateral tracking may improve liquidity and reduce risk.
ANZ is experimenting with tokenized trade payables to determine how wholesale CBDCs can streamline credit and settlement in fixed income.
These efforts are aimed at showcasing how digital money can enhance settlement speed, free up capital, and make the financial system more resilient.
Regulatory Support and Oversight
The ASIC, or Australian Securities and Investments Commission, has waived certain regulations to allow entities to test blockchain-based financial assets not yet covered by current laws.
As per ASIC Commissioner Kate O’Rourke, the regulatory exemption exists to foster innovation safely and help identify and manage risks. She noted that these trials offer a real-world understanding of how the technology performs in bulk markets.
A Strategic Shift Toward Wholesale Use
While some countries are pursuing retail CBDCs, Australia is focusing on wholesale applications believed to deliver more significant benefits. These include:
- Reducing counterparty and operational risks
- Enhancing transparency and auditability
- Lowering transaction costs
- Improving collateral efficiency
Looking Ahead
Project Acacia arrives at a time when global finance is rapidly digitizing. It could position Australia as a leader in digital finance and infrastructure.
As the pilot progresses, regulators, banks, and tech firms may gain clearer insights into how tokenized money can enhance institutional finance by speeding up settlement, improving compliance, and optimizing liquidity.
According to experts at the University of Melbourne, Australia may develop a world-leading digital currency trial and drive international leadership in digital finance.
