Reserve Bank of Australia Looks To Deny Cryptos Like Facebook's Libra Until Regulations Are Met

When it comes to Libra and the viability of central bank digital currencies (CBDCs), the Reserve Bank of Australia (RBA) has announced it has serious doubts.

RBA officials said in December last year they don’t believe cryptocurrencies will ever take the place of money issued by governments. While Libra and CBDCs are believed to promote financial inclusion, RBA has assessed their innovation in the global fintech space and concluded they’re redundant solutions.

RBA Has a Team Evaluating New Tech for the Country’s Payments System

Since 2018, the RBA has had their own research group that assess' new payment structures and technology involved for the country. This team evaluated CBDCs and what a “wholesale settlement system” can do on a private Ethereum (ETH) network, as to attempt understand better if tokens could be efficient when it comes to commercial banks issuing currency.

CBDCs Encouraged by Some Central Bankers

There are some central bankers, Mark Carney and Christine Lagarde included, who encourage CBDCs, not to mention the People’s Bank of China (PBOC) is currently testing the impact on the public of its future digital Yuan. However, RBA thinks an Australian digital currency would only disrupt the country’s financial system at this point, especially when it comes to the retail industry using it. It cites a research done by the accounting company EY and that discovered a CBDC wouldn’t be effective to promote Australia’s fintech sector.

The RBA Doesn’t Think Cryptocurrencies Have a Future

After watching the asset class for years, the RBA doesn’t see a future for cryptocurrencies, especially since these aren’t widely accepted or used as payment and their volatility is more popular among speculators, not among ordinary people. Philip Lowe, RBA’s governor, doesn’t see the role of Libra in a country that already has a very efficient electronic payment system like the NPP, which was introduced in 2018 and allows users to make transactions using their email or phone number. While backed by the RBA, many commercial banks didn’t support the NPP, with RBA describing it as disappointing in June 2019.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Oana Ularu
Oana Ularu
Curious about what’s going on with all the money in the world, Oana is bringing you the latest news in the crypto world. She’s aware of the fact that you need to know everything that’s happening on the financial scene in order to play the cryptocurrency market, so you can count on her to share with you every little detail on what matters.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,235FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

YFI’s Andre Cronje isn’t Going Anywhere; ‘This Space Won't Get Rid of Me'

Andre Cronje, the guy behind yEarn and the popular YFI, is not leaving the cryptocurrency space any time soon, at least, “until there is...

Crypto Mom, Hester Peirce, Secures Second Term as SEC Commissioner Through 2025

The US Securities and Exchange (SEC) Commissioner Hester Peirce, aka “Crypto Mom,” has been confirmed for a second term that will last till June...

yEarn Expanding its Ecosystem to Bring in Hot DeFi Tokens into the Mix

DeFi craze continues to get hotter as the system grows. yEarn’s zero supply valueless token YFI climbed to a new high today at $5,300 and...

Bitcoin Dollar Cost Averaging From 2017 Market Peak Still Returned 61.8%

Bitcoin price remains strong, not far from hitting $12,000 yet again after the touch and go over the weekend. Interestingly, despite the fact that the...

DEX Leader Raises $11 Million in Series A Funding for Uniswap V3 Following an Explosive Month

A popular and widely used decentralized exchange (DEX) Uniswap has raised $11 million in Series A funding led by Andreessen Horowitz with additional investment...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today