Reserve Bank of Australia chief: Private stablecoins may be better than CBDCs
Categories: Crypto News US
Reserve Bank of Australia chief: Private stablecoins may be better than CBDCs
In a recent panel discussion of the G20 Finance Officials meeting in Indonesia, Reserve Bank of Australia (RBA) Governor Philip Lowe indicated his support for privately issued stablecoins, subject to appropriate consumer protection guardrails.
Is the Private Sector Better to Issue Digital Dollars?
Just weeks after Australian treasurer Jim Chalmers said crypto would be left out of the forex tax regime, RBA chief Lowe's has said privately-issued stablecoinsmay outperform central bank digital currencies (CBDCs). provided the companies concerned are suitably regulated.
A panel discussion that included the inherent risks of decentralized finance (DeFi)projects moved to CBDCs and their potential applications in both a retail or wholesale context. With the recent explosion of “stablecoins” UST and Luna, regulation has increasingly come into focus, an issue that undoubtedly partly informs the RBA chief’s comments on privately issued stablecoins.
As crypto regulationis one of the stated priorities of the newly elected federal government, those who oppose retail CBDCs based on financial oversight and freedom infringement will be pleased to learn that the RBA governor is more inclined towards a free market solution. However, this in itself does not provide any guarantees, as both Tether (USDT) and Circle (USDC)have been accused of censorship in the past.