With the growth of the crypto sector, several central banks around the world are actively considering issuing a national digital currency in the form of a central bank digital currency (CBDC). However, the Reserve Bank of Australia (RBA) – like many other central banks, does not think there is a need to issue one just yet.
According to the head of payment policy at Australia’s central bank, Tony Richards, cash transactions are on a steady decline. Regardless, Richards says that cash is “still widely available and accepted” for transactions, suggesting that a CBDC is not yet needed.
Richards also added that businesses and households in the country are currently powered by an efficient payment system that is reliable enough for citizens. He boasts that the payment system is a “real-time, 24/7 and data-rich” platform that has been improved a few times over the years.
Although the RBA isn’t ready, Richards says that the bank is looking into the possibility of a CBDC and the advantages it may bring:
“We will be continuing to consider the case for a CBDC, including how it might be designed, the potential benefits and policy implications, and the conditions in which significant demand for a CBDC might emerge.”
According to Richards, the RBA is also considering other factors, such as whether the CBDC will be based on a token or an account, or how much anonymity will be ascribed to the asset.
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