Project Acacia is a joint initiative between the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Centre (DFCRC). This work is also supported by the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA), and the Australian Treasury. This project is one of the initiatives highlighted in the Government’s March 2025 Statement on Developing an Innovative Australian Digital Asset Industry.

24 innovative use cases from a diverse range of organisations, ranging from local fintechs to major banks, have been conditionally selected for this next stage of the project. There will be:

• 19 pilot use cases, which will involve real money and real asset transactions, and
• 5 proof-of-concept use cases involving simulated transactions.

The use cases involve "a range of asset classes, including fixed income, private markets, trade receivables and carbon credits."

Proposed settlement assets for the use cases include "stablecoins, bank deposit tokens, and pilot wholesale central bank digital currency (CBDC), as well as new ways of using banks’ existing exchange settlement accounts at the RBA."

Issuance of pilot wholesale CBDC for testing use cases will "occur on a range of private and public-permissioned DLT platforms, including Hedera, Redbelly Network, R3 Corda, Canvas Connect and other EVM-compatible networks."

Testing of use cases will occur over the next six months, with a report on the findings from the project expected to be published in the first quarter of 2026. 

This statement outlines the Government’s approach to reform, progress to date and the forward workplan.

The four primary elements to Australia’s approach to digital asset reforms are:

• a framework for Digital Asset Platforms (DAPs);
• a framework for payment stablecoins, which will be treated as a type of Stored-Value Facility (SVF) under the Government’s Payments Licensing Reforms;
• undertaking a review of Australia’s Enhanced Regulatory Sandbox; and
• a suite of initiatives to investigate ways to safely unlock the potential benefits of digital asset technology across financial markets and the broader Australian economy. 

The response addresses the government-specific recommendations. The remaining recommendations are directed to the Australian Taxation Office as the administrator of Australia’s taxation laws.

To provide greater clarity about the current law, ASIC has proposed a range of updates to INFO 225, including adding 13 practical examples of how the current financial product definitions apply to digital assets and related products.

According to the press release, ASIC’s existing approach to financial services licences will apply to digital assets. For example, whether an applicant is proposing to deal in traditional securities or securities based on a digital asset platform, the same licensing regime applies.

The consultation is seeking feedback on:

• ASIC’s updated guidance in INFO 225, including the worked examples,
• the application of the existing Australian Financial Services (AFS) licence processes, ASIC guidance and standard conditions to digital asset businesses,
• practical licensing issues for wrapped tokens and ‘stablecoins’, issues arising from the potential transition to the Government’s proposed digital asset platform and payment stablecoins regimes, and consideration of potential regulatory relief, and
• a potential class ‘no action’ position for digital asset businesses that are in the process of applying for or varying an AFS licence, Australian Markets Licence or Clearing and Settlement Facility licence.

The deadline for comments is 28 February 2025. 

ASIC intends to publish a final version of the updated INFO 225 in mid-2025, after considering feedback received through the consultation process.

The consultation paper explores:

(i) a comparison of two options:

• adding the Crypto Asset Reporting Framework into Australian tax law;
• customising a policy approach.

(ii) related amendments to the Common Reporting Standard (CRS).

Deadline for responses is 24 January 2025.

The consultation paper seeks feedback from industry on, and expressions of interest to participate in, the second phase of this project which will involve exploration and experimentation on approaches to tokenised asset settlement. An Industry Advisory Group will be established to provide broad-based industry input to the project.

Deadline for feedback is 11 December 2024.

The consultation seeks feedback from industry on, and expressions of interest to participate in, the second phase of this project which will involve exploration and experimentation on approaches to tokenised asset settlement. An Industry Advisory Group will be established to provide broad-based industry input to the project.

Deadline for comments is 11 December 2024.

The report finds that a "clear public interest case to issue a retail CBDC has yet to emerge in Australia."

This assessment is partly informed by the observation that "Australians are generally well served by the capabilities and resilience of the current retail payments system."

In jurisdictions that have issued a retail CBDC or indicated that it is quite possible in coming years, the main motivations have less resonance in Australia. Nonetheless, the RBA and Treasury remain "open to the possibility that this assessment could change over time as potential benefits and costs are better understood, both internationally and in a domestic context."

The report also highlights the role that a wholesale CBDC, alongside other forms of digital money and infrastructure upgrades, could play in enhancing the functioning of wholesale markets in Australia.