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Stable digital coins can play an important role in the Australian economy and financial system. This is stated in the new report of the Reserve Bank of the country (RBA).
“Stablecoin activity in Australia has been relatively limited to date, although stablecoins may play a more prominent role in the financial system in the future,” the authors of the report said.
The RBA acknowledges that stablecoins will need a strong regulatory framework:
“The RBA supports the development of regulatory mechanisms for stablecoins that support innovation while providing appropriate safeguards and protection for investors and users.”
The Central Bank reminds that it has not yet been adopteddecision to introduce a digital Australian dollar. However, the bank is "actively involved" in government digital currency (CBDC) research. The RBA believes that most countries that have issued a CBDC use it "to improve the efficiency of their domestic payment systems."
In the spring, RBA together with the CorporateThe Digital Finance Research Center (DFCRC) has launched a pilot project to explore the options for using the state stablecoin. The Central Bank began testing the digital Australian dollar in offline payments, corporate settlements, auctions and trading in securities with highly liquid assets.
In March, the National Bank of Australia (NAB) announced a successful cross-border transaction using the AUDN stablecoin pegged to the Australian dollar.