December 5, 2022

The Central Bank of Australia pointed to the advantage of regulated cryptocurrencies over CBDC

The Central Bank of Australia pointed to the advantage of regulated cryptocurrencies over CBDC

Regulated and consumer-facing private tokens, with proper oversight by their issuers, are better than national digital currencies (CBDC). This was stated by RBA Governor Philip Lowe, writes Reuters.

During the financial G20 conference, an officialexplained that, unlike the state, the private sector is better at innovating and developing the functionality of tokens. The central bank will require "significant costs to create a CBDC," he added.

Lowe was joined by the head of the Monetary Authority of Hong Kong, Eddie Yue. He urged to carefully study the work of stablecoins to reduce the risks posed by DeFi protocols.

"In spite of Terra-Luna incident, cryptocurrencies and decentralized finance will not disappear. The technologies and innovations behind them will shape the future system.” - explained the functionary.

Recall that in June 2022, BIS called CBDC the basis of the monetary systems of the future.

Former Australian Finance Minister Josh Friedenbergannounced that the country will issue its own digital currency. Recall that the RBA is participating in the Dunbar project to test cross-border settlements at the CBDC under the auspices of the Bank for International Settlements.

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