The core issues of Central Bank Digital Currency (CBDC) have been discussed many times by the financial market, but two major concerns still merit attention from regulatory bodies, financial institutions, and the general public: First, in a cashless society, all transactions would be traceable and lack privacy. Second, regulatory bodies and the banking system could have full control over individuals' handling of their assets, even going as far as to directly disable users' access or account functions.
Over the past year, the Australian government and the Reserve Bank of Australia have been beta testing the application of CBDC. The country's central bank and government, in collaboration with the Bank for International Settlements and companies such as Mastercard, are to conclude their test projects this fall. It appears that the Australian government plans to implement CBDC shortly after these test projects conclude.
Officials in favor of CBDC noted that over the past three years, the population using cash in Australia has decreased from 32% to 16%, indicating Australia's shift towards a cashless society. However, what these officials did not mention is that since the outbreak of the global pandemic in 2020, Australia's stringent pandemic control measures have forced the public to rely solely on digital currencies and online shopping activities.
Some branches of Australia's big four banks have already eliminated cash withdrawal services at counters and established "special centers" to meet more complex service needs, including those involving cash. However, data reveals that the Australian banking system is reducing the use of cash, gradually forcing the public to accept and use digital currencies.
As some members of the World Economic Forum have acknowledged, the Australian government could use CBDC to prevent consumers from purchasing items with negative social impact. These items could range from firearms and ammunition to basic daily necessities. In other words, with CBDC, the Australian government wouldn't have to ban certain items but can instead make it impossible for consumers to purchase them.
