The Reserve Bank of Australia (RBA) has officially launched the next phase of project Acacia, a major exploration into Central Bank Digital Currencies (CBDCs), stablecoins, and bank deposit tokens, reshaping the digital financial market.
In the first phase, the project explored how different digital assets and their infrastructure could boost the wholesale financial market. After the success of the first phase, they finally began the second phase.
Project Acacia
The initial phase of project Acacia, which was completed in August 2024, focused on the RBA and e Digital Finance Cooperative Research Centre (DFCRC) establishing a ‘design framework’ exploring various digital money settlement models for tokenized asset transactions.
The pilot program will involve organizations from local fintech startups to major banks, with them running 24 real-life cases, and 19 involving real transactions and not just theory. These trials focus on theoretical validation, ensuring a balance between practical implementation and conceptual feasibility.
They aim to explore how digital currencies, including CBDC and tokenization of Independent Payment Undertakings (IPUs), can automate settlement and improve financial liquidity in the digital economy.
“Project Acacia represents an opportunity for further collaborative exploration on tokenized asset markets and the future of money by Australia’s public and private sectors,” said Brad Jones, Assistant Governor (Financial System) at the RBA.
Why Australia’s CBDC pilot could reshape finance
Three of Australia’s four largest banks are actively participating in the pilot: Commonwealth Bank (CBA), Australian Bond Exchange, ANZ Banking Group, and Westpac Banking Corporation. However, there are other participants of value contributing to the pilot phase.
“Ensuring that Australia’s payments and monetary arrangements are fit-for-purpose in the digital age is a strategic priority for the RBA and the Payments System Board,” said Brad.
The testing phase is expected to last over the next 6 months, with final findings anticipated in early 2026.
