The central custody subsidiary of the Kontrollbank, the Federal Finance Agency, Erste Group and Raiffeisen Bank International are also on board in the broad-based project.
The Oesterreichische Nationalbank (OeNB) is experimenting with digital currency in a research project. In the course of the issue, a wholesale CBDC (Central Bank Digital Currency) provided by the OeNB, which is directly linked to the value of the euro, is to be used to ensure the simultaneous processing of the delivery of the security against a corresponding payment. The central custody subsidiary of the Kontrollbank, OeKB CSD, the Federal Finance Agency (OeBFA) and the two banks Erste Group and Raiffeisen Bank International (RBI) are also involved in the project.
In addition to the issue and the associated processes, according to the OeNB, the development of the legal framework is an essential part of the initiative in order to check compatibility with Austrian law and the applicable EU regulations and to identify any necessary adaptations of the applicable law. The goal: to support the implementation of a blockchain-based solution.
Fit for the blockchain
Last but not least, the potential for a marketable implementation is to be analyzed in a further sub-project. With this, the research project would like to take a significant step towards making the Austrian capital market fit for blockchain solutions.
To date, the Wholesale CBDC has only been of a research nature. It should not be understood as an indication that the OeNB is planning to issue a wholesale CBDC, according to OeNB department head Reinhard Beck. Beck is certain, however, that “new technologies will permanently change the financial system.”