March 29, 2024

Reserve Bank of Australia: Stablecoins can play an important role in the financial system

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Reserve Bank of Australia: Stablecoins can play an important role in the financial system

Stable digital coins can play an important role in Australia's economy and financial system. This is stated in a new report from the country's Reserve Bank (RBA).

“Stablecoin activity in Australia atto date has been relatively limited, although stablecoins may play a more prominent role in the financial system in the future,” the report’s authors said.

The RBA acknowledges that stablecoins will need a strong regulatory framework:

“The RBA supports the development of regulatory frameworks for stablecoins that support innovation while providing appropriate safeguards and protections for investors and users.”

The Central Bank reminds that it is still notThe decision was made to introduce a digital Australian dollar. However, the bank is “actively involved” in government-owned digital currency (CBDC) research. The RBA believes that most countries that have issued a CBDC are using it “to improve the efficiency of their domestic payment systems.”

In the spring, the RBA together with the CorporateThe Digital Finance Research Center (DFCRC) has launched a pilot project to explore use cases for a government-owned stablecoin. The Central Bank has begun testing the digital Australian dollar in offline payments, corporate settlements, auctions and in securities trading with highly liquid assets.

In March, National Australia Bank (NAB) reported a successful cross-border transaction using the AUDN stablecoin pegged to the Australian dollar.