Stable digital coins can play an important role in the Australian economy and financial system. This is stated in the new report of the Reserve Bank of the country (RBA).
“The activity of stablecoins in Australia has been relatively limited to date, although stablecoins may play a more prominent role in the financial system in the future,” the authors of the report believe.
RBA Recognizes that Stablecoins Will Need a Strong Regulatory Framework:
“The RBA supports the development of regulatory mechanisms for stablecoins that support innovation while providing appropriate safeguards and protections for investors and users.”
The central bank recalls that no decision has yet been made on the introduction of the digital Australian dollar. However, the bank is “actively involved” in the research of the state digital currency (CBDC). The RBA believes that most countries that have issued CBDC use it “to improve the efficiency of their internal payment systems.”
In the spring, the RBA, together with the Corporate Research Center for Digital Finance (DFCRC), launched a pilot project to study options for using the state stablecoin. The central bank has started testing the digital Australian dollar in offline payments, corporate settlements, auctions and in trading securities with highly liquid assets.
In March, the National Bank of Australia (NAB) announced a successful cross-border transaction using the AUDN stablecoin pegged to the Australian dollar.