Australia’s central bank weighs digital currency, remains unconvinced

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SYDNEY, Nov 18 (Businesshala) – Australia’s Reserve Bank, like some other major central banks, has stepped up research into running its digital currency, but is unconvinced of the merits, its payments major said on Thursday.

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The comments, made at a financial services conference, follow a report by the Australian Senate last month that called for laws to be changed in ways that were more responsive to digital currencies.

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Most major economies are now considering whether to issue a central bank digital currency (CBDC) – an internet-only cash equivalent that differs from cryptocurrency in that it is not decentralized – although none have done so yet. Tony Richards, head of the Reserve Bank of Australia’s payment policy, said.

However, “given the possibility that the balance may shift to retail CBDC issuance, the bank is continuing its CBDC research”, Richards said in a speech at the Australian Corporate Treasury Association.

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Noting that the European Central Bank and Sweden appear to be the most advanced among major economies to consider the role of CBDCs, Richards said the US Federal Reserve was more cautious.

“Even Reserve Bank (Australia) employees are not convinced to date that a strong policy case has emerged in Australia for CBDCs,” he said.

“Australia’s existing electronic payment systems already provide homes and businesses with a wide range of secure, convenient and low-cost payment services.”

Amid a rush of internet-only money, which has been partly caused by a shift towards online life during the pandemic, Australia’s largest bank also said this month it would offer some cryptocurrency trading services through its smartphone app. Had been.

Reporting by Byron Kaye; Editing by Simon Cameron-Moore

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