Australia's RBA Launches Six-Month Digital Currency Trial With Major Banks

The Reserve Bank of Australia (RBA) has initiated a comprehensive six-month trial to explore the potential of digital currencies in transforming the nation's financial landscape. This trial, known as Project Acacia, is the second phase of the RBA's digital currency pilot and focuses on wholesale use cases. The project aims to test 24 different scenarios involving digital currencies, including stablecoins, bank-issued deposit tokens, and a pilot central bank digital currency (CBDC). Of these, 19 scenarios will be based on real financial transactions, while five will be virtual simulations.

The trial encompasses a wide range of assets from various sectors, such as fixed income, private markets, carbon credits, trade receivables, and new applications for accounts at the RBA. The primary goal is to assess how digital currencies and tokenization can enhance the efficiency, security, and transparency of financial systems. The RBA is collaborating with the Digital Finance Cooperative Research Centre (DFCRC) on this initiative, which was announced in November. The results of the trial are expected to be available in early 2026.

Australia’s major banks are at the forefront of this digital currency trial. Three of the 'big four' banks—Commonwealth Bank (CBA), ANZ, and Westpac—are actively participating, each focusing on specific use cases that align with their expertise. CBA, in partnership with JPMorgan, is piloting a project in the repo market, which involves short-term loans backed by government securities. This market is crucial for liquidity management and the implementation of monetary policy. The objective is to determine if blockchain-based tokens can reduce friction, decrease risk, and improve market liquidity.

ANZ is exploring tokenized trade payables, aiming to address long-term issues related to working capital and cash flow within supply chains. By converting invoices into negotiable digital tokens, businesses, especially small suppliers, could receive payments more swiftly and efficiently. ANZ is also investigating how a wholesale CBDC can facilitate real-time and secure settlement in the fixed-income market, potentially saving time and costs associated with bonds and other trading activities.

Westpac is also involved in the trial, although the specifics of their participation are not yet disclosed. However, the bank has a history of contributing to and participating in blockchain pilots, indicating a strong interest in the technology.

The trial has been facilitated by temporary relief from certain legal and regulatory obligations provided to Australian authorities. The Australian Securities and Investments Commission (ASIC) has collaborated with the RBA and DFCRC to approve participants for testing transactions involving digital assets not currently regulated under financial regulations. ASIC Commissioner Kate O’Rourke highlighted the potential of distributed ledger technology (DLT) in streamlining financial market infrastructure and eliminating inefficiencies. The regulatory flexibility allows for safe experimentation, enabling participants to explore new opportunities while identifying and addressing potential risks.

This regulatory sandbox provides a controlled environment for developers to experiment with new technologies without violating any laws. The insights gained from this trial will be crucial in shaping Australia's response to digital asset regulations in the future. The project is part of the Australian government's broader efforts to regulate the crypto space more effectively. In March 2025, the Labour-led government published a consultation to bring crypto exchanges and service providers under the existing financial service laws regime, aiming to enhance consumer protection and promote financial stability. The government has also pledged to consult with banks to better understand the issue of de-banking, where traditional banks cease providing services to firms in the crypto sector, and to find a balance between innovation and risk management.