[LINK] Central Bank Digital Currency (CBDC)

[David]

On 15/05/2023 6:39 pm, Stephen Loosley wrote:

> Project Atom
>
> A collaborative project undertaken in 2020–2021 between the Reserve 
> Bank, Commonwealth Bank of Australia, National Australia Bank, 
> Perpetual and ConsenSys, with additional input from King & Wood 
> Mallesons. The project involved the development of a proof of concept 
> for the issuance of a tokenised form of CBDC that could be used by 
> wholesale market participants for the funding, settlement and 
> repayment of a tokenised syndicated loan on an Ethereum-based DLT 
> platform. 

I'm not clear what is meant by a "tokenised" form of CBDC, but that 
aside, the point of my earlier post is that any CBDC must be solidly 
founded on the national asset-base, which is a defining characteristic 
of a central-bank currency.

Most or all privately created currencies have _no_ underlying asset base 
AFAIK, and that's essentially the cause of the wild swings in value 
shown by Bitcoin over recent years.

I see the Atom project favours Etherium.  It also uses blockchain 
technology, which I think still has scaling problems, but Etherium is at 
least open-source.

The quote above states Atom was "/a proof of concept for the issuance of 
a tokenised form of CBDC that could be used by wholesale market 
participants for the funding, settlement and repayment of a tokenised 
syndicated loan on an Ethereum-based DLT platform./" which seems to 
imply the Reserve Bank / Wholesaler interface might define the point 
where responsibility for financial responsibility transitions between 
parties, as it evidently does now.

_David Lochrin_