The RBA of Australia Says Libra won’t be allowed, even if regulated
The presentation of the Reserve Bank of Australia (RBA) before a senate inquiry into technology established the bank’s contemplation concerning the introduction of digital Australian dollar.
The digital version of AUD will enhance speedy transactions carried out by commercial banks and other corporate organizations in Australia.
The official submission of the RBA affirmed the use of the innovation lab to know whether the digital AUD is functional when it comes to its responsibilities in issuing the currency and managing the payments system.
According to RBA, such innovations in payment systems are capable of enhancing economic productivity and move the country towards becoming a digital economy. However, the Bank maintained that it does not consider the establishment of c such as BTC as payment means in the country, because it is extremely volatile. The Bank noted that it is ready for the emergence of stablecoins in Australia.
Besides, the Bank stated its collaboration with regulators towards the monitoring of the stablecoin project of Facebook (Libra). It highlighted the wide usage potential of Libra, based on the large user base of Facebook as well as technological capacities.
Nevertheless, the Bank also noted in the presentation that there is no hope of Facebook launching its digital currency in Australia. According to the RBA, Australia will not allow it even if it is heavily regulated as required. The RBA supports the perspective of the G7 that countries should not allow stablecoin from the private sector to launch until they address every risk and regulatory requirement.
Featured image courtesy of Shutterstock. Source: Cryptopress.