Australia's Central Bank Outlines Key Priorities for Modernizing Payment Systems

According to PANews, Reserve Bank of Australia (RBA) Governor Michele Bullock has outlined four major priorities to modernize the nation's payment systems, emphasizing the balance between innovation and security. Bullock stated that the primary focus is on upgrading Australia's interbank payment infrastructure to replace the aging Bulk Electronic Clearing System (BECS). The goal is to implement a plan by mid-2026 to enable real-time, 24/7 payments with enhanced data support. Additionally, the RBA is collaborating with industry partners to improve cross-border payment efficiency, reduce costs, and increase transparency. The third priority involves investing in fraud prevention and upgrading encryption to quantum-safe standards, with plans to migrate card systems to the AES quantum-safe protocol. Lastly, the RBA aims to strengthen operational resilience to ensure stability in the payment network amid the development of digital currencies and central bank digital currencies (CBDCs). Bullock added that despite the widespread adoption of digital payments, the RBA remains committed to maintaining cash circulation. The bank is working with major banks and regulatory bodies to explore new cash distribution models to ensure long-term sustainability.