Gilder said the purpose of the project was to learn about how CBDCs could be applied in the real world, including understanding regulatory issues that might arise. The pilots were more than theoretical as CBA would be using real money.

“The money is real – it’s converted into a new format,” Gilder said.

The RBA has previously said that introducing a retail CBDC would be “revolutionary” and it is not convinced of the case for a retail CBDC.

However, Gilder said there was a global push from central banks to investigate CBDCs.

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“There’s not a major economy in the globe that’s not looking at what could a future where there’s a CBDC look like,” she said. “Australia is not likely to lead in this space, we are more likely to follow.”

In one pilot program, CBA will test how CBDCs could be used to automate business activity statements, which businesses that collect GST must regularly file with the tax office.

ANZ and CBA are also working together to test how nature-based assets such as carbon credits could be traded more efficiently through “tokenisation”, which involves creating digital representations of real-world assets.

In another pilot program, ANZ will attempt to show how CBDCs could provide a form of “digital cash”, even when there is no online connectivity, such as when there is a major outage.

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The RBA’s assistant governor for the financial system, Brad Jones, welcomed the engagement from the industry and highlighted the range of players involved in the trials, including big banks and fintechs.

“The pilot and broader research study that will be conducted in parallel will serve two ends – it will contribute to hands-on learning by industry, and it will add to policymakers’ understanding of how a CBDC could potentially benefit the Australian financial system and economy,” Jones said.

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