ANZ tried offline CBDC payment through smart card

It is reported that ANZ is cooperating with two universities to try offline CBDC payment through smart cards, which can load funds and be used like physical cash. The pilot will be conducted on the campus of Southern Cross University and RMIT University. As part of the pilot project, NFC-supported smart cards with CBDC funds will be distributed to participating students. This is one of the four tests supported by ANZ in the RBA pilot. Another project will test the efficiency and effectiveness of employers using CBDC to pay pensions as a viable alternative to traditional payment methods, while the third project will study the issuance of CBDC according to KYC process.

Interpretation of this information:

ANZ, one of Australia’s major banks, is reportedly collaborating with Southern Cross University and RMIT University to experiment with offline CBDC payment via smart cards, a physical payment method. The smart cards, equipped with NFC technology and CBDC funds, will be given to selected students as part of the pilot project. The trial is one of four supported by ANZ in the Reserve Bank of Australia (RBA) pilot program.

The objective of this experiment is to test the feasibility and efficiency of using CBDC as an alternative payment method to physical cash. By using smart cards, customers can load funds onto the card and spend them offline without needing to rely on internet connectivity. This could potentially increase access to digital payment options for those who don’t have access to stable internet or smartphones.

Another project supported by ANZ under the RBA pilot program is testing the use of CBDC for employers to pay pensions. By using CBDC, employers can reduce costs associated with traditional payment methods and increase transparency and security of payments. This could benefit both employers and pensioners in terms of cost savings and security.

The third project supported by ANZ is focused on the KYC (Know Your Customer) process for CBDC issuance. KYC is an essential step for CBDC issuers to ensure compliance with regulatory and financial laws. By studying the KYC process for CBDC issuance, ANZ can improve the security and transparency of the CBDC issuance process.

In summary, ANZ is collaborating with two universities to trial offline CBDC payment through smart cards. The pilot project aims to test the feasibility and efficiency of using CBDC as an alternative payment method to physical cash. ANZ is also supporting other projects under the RBA pilot program, including testing the use of CBDC for employers to pay pensions and studying the KYC process for CBDC issuance.