The Reserve Bank of Australia appreciated the cryptocurrency’s backend technology & stablecoins, as better innovations for the future’s financial system.
Crypto trading is legal under the jurisdiction of Australia but under the Aussie laws cryptocurrencies are not financial assets or products, so the majority of the crypto firms are not regulated in this country, while they are providing services under traditional financial laws.
Recently The Reserve Bank of Australia (RBA) published its submission into an inquiry for a digital assets bill, a proposed bill that aims to regulate the crypto exchanges in Australian jurisdictions.
The RBA’s submission was mainly focused on stablecoins regulation. The central bank body sees stablecoins as a new form of payment tool & planning to bring a strong regulatory control, to keep associated risks away.
The central bank noted that stablecoins use is still at a very low level but there are huge chances that it will bring more dominance in the financial payment systems in the future.
“Stablecoin activity in Australia has been relatively limited to date, although there is potential for stablecoins to play a more prominent role in the financial system in the future,” the RBA explained.
The RBA also passed comments on the Central Bank Digital Currency (CBDCs) and said that so far no decision has been made regarding the plans to bring Australian CBDC but still the central bank will keep its research activities live on potential CBDC development.
According to the Australian central bank, the majority of the foreign’s CBDCs aim to bring efficiency enhancement of their domestic payment systems but here Australia is focused to bring CBDC use cross-border uses also. This means, people will be able to Australian CBDC in the country as well as outside the country.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.