Australia and New Zealand Won’t Issue Their Own Cryptocurrencies
June 27, 2018
The issue of digital currencies from central banks (CBDC) has been brought up more and more often lately. But that’s is not the case in Australia and New Zealand in the nearest future as both countries have removed such possibility.
According to the chief of the payments policy department at the Reserve Bank of Australia (RBA) Tony Richards, demand for central bank’s digital currency is quite low among citizens. What is more, the potential of cryptocurrencies is limited by some structural drawbacks. The problems of Bitcoin with scalability and management make it less effective when compared with traditional payment means like Visa. He also reminded that at the top of its popularity Bitcoin saw large queues of unverified transactions and high commissions.
Richards stated that issuance of central bank’s digital currency or electronic Australian dollar is not necessary in the current financial system of the country. He also told that most of central banks from developed countries also don’t regard issuing CBDC the top priority.
Similar stance was taken by the governor of the Reserve Bank of Australia Geoff Bascand. As he put it, cryptocurrency issued by central bank will be unstable due to scalability problems and long transaction verification process. He notes that it is so far unclear how profitable CBDC may be so it is untimely to discuss the matter.