RBA Fails to Embrace Libra Even under Regulated Grounds

News / 10.01.2020

Based on the Reverse Bank of Australia’s (RBA) presentations conducted in the presence of a senate, queries in light of the established technologies assimilated by the financial institution were made and followed concerns raised based on introductions of the digital dollar of Australia. The primary function that is expected to establish the utilization of the digital AUD is focused on facilitating faster transactions that are done explicitly by major commercial institutions and even corporate companies in the Australian region. 

Submission of the RBA Affirmation

Following the RBA submission report, the innovation lab’s utilization was confirmed to understand the digital AUD’s functionality based on its imminent responsibility created in the management of transaction systems and currency-issuing. Based on the RBA and insights on payment systems innovations, capabilities reflected in improving economic output are realized, understanding the impact of making the country a digital economy. The Reserve Bank of Australia did not consider the cryptocurrency establishment of digital currencies such as Bitcoin as payment systems in the region, based on its high volatility. As a result, the financial institution realized that the country is ready for transactions based on stablecoins in the region. 

Facebook’s Libra

The RBA institution claimed its accepted collaboration of the newly developed regulations in light of the utilization of stablecoins presented in the use of Libra network by Facebook, and also clearly mentioned the aspiration of broad utilization of the network (Libra). It favored the factual information based on the Facebook online platform’s large users and the technological capabilities presented through the Libra network. 

In light of this elaboration and insight of Facebook’s Libra network, launch on the technology will not be accepted in the region of Australia as a digital currency. It was based on the RBA claims, which stated its explicit rejection of the network regardless of its assimilation of significant regulations. The basis of this argument created was that the regulatory requirements and risks involved in the use of stablecoins have not yet been thoroughly analyzed, and the solutions recommended. Thus, it presents an issue the utilization in the private sector. The RBA also made these claims in light of supporting the G7 perspective.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.