Reimaging legal tender and banking law for the issuance and usage of a retail central bank digital currency in Australia

As nations around the world consider the issue and use of a retail central bank digital currency (rCBDC), this article analyses its potential regulation within Australia. Specifically, the article examines whether rCBDCs constitute legal tender and explores the legal characterisation of rCBDCs, analysing whether they replicate cash or coins and whether they fall within the concept of either an account-based or token-based payment system. Beyond banking law, the paper also considers the potential legal frameworks that could govern the usage of rCBDCs in Australia, highlighting areas of uncertainty. The findings underscore the potential benefits of rCBDCs in enhancing financial services and efficiency but emphasise the need for careful consideration of their legal status and the importance of integrating them into the current regulatory framework.