The reserve Bank of Australia (RBA) believes that cryptocurrencies, including stablecoins issued by Central banks, are unlikely to replace conventional money.
Despite the fact that many countries are beginning to actively explore the possibility of issuing their own digital currency, the RBA doubts that such coins will become an effective alternative to Fiat currencies. The Bank also expressed its negative attitude towards the Libra stablecoin, saying that the financial technology sector is already oversupplied with such initiatives.
“Even if stablecoins meet all the requirements of regulators, it is unknown whether there will be demand for them in Australia. If we talk about domestic payments, the country already has many convenient and cost-effective ways to pay in real time, for example, the new payment platforms NPP”, – said the representatives of the RBA.
The Central Bank of Australia believes that the development of stablecoins is resorted to by those countries that do not have a reliable currency. According to the RBA, the creation of a digital Australian dollar will be an unnecessary intervention in the established financial system, so the possibility of issuing a state stablecoin for the development of the country’s financial sector will be considered only as a last resort.
Recall that back in 2018, Tony Richards, head of the RBA’s payment policy division, said that bitcoin and other digital currencies will not be particularly popular in the region of Australia and Oceania due to the high volatility of cryptocurrencies and the stability of the Australian dollar.