With zero interest rates, money market participants have been less willing to invest their funds in the market, because returns from such transactions have not been sufficient to cover their trading costs.
The RBA is also in the midst of another significant wholesale CBDC project – Project Dunbar, which is being conducted with the BIS Innovation Hub and three other central banks – to explore the possible use of CBDC in cross-border payments. The regulatory environment I would now like to move to the regulatory challenges posed by this fast moving world of payments.