Digi.cash launches digital Aussie dollar

A digital version of the Australian dollar has been launched by Digi.cash, a spin-off of Capital Markets CRC.

Digi.cash launches digital Aussie dollar

Killian Plastow

Last Updated: 23 August 2016 Published: 23 August 2016

The new digital currency uses "digitally 'minted' coins and banknotes", which Digi.cash founder Andreas Furche  said provided "a number of important technology advantages".

"Unlike other digital money products, digi.cash is actually minted digital coins and notes that you hold yourself, rather than an interface to an account balance being held elsewhere," he said.

Digi.cash chair David Skellern said the currency was based on "cryptographic protocols" developed by digital cash inventor David Chaum, adding that technology developed since the 1990s when Mr Chaum first began implementation had finally made digital currency feasible.

"The spread of smartphones has, for the first time, made a real digital cash system viable. The technology is very impressive and it is capable of moving us towards the digital money era," he said.

Digi.cash is operating under an exemption ruling from the Reserve Bank of Australia, though the total funds on issue has been limited to $10 million.

The company is looking to have this limit removed, though Mr Furche noted it was important for the company to "develop this technology within existing payments regulation".

"We want to improve the ability of the regulated payments system to positively compete with unregulated developments, not add to the issues created by developments beyond the reach of national laws," he said.