Australia’s central bank is skeptical of the digital dollar, but that could change.

FILE PHOTO: A worker is reflected in a wall of the Reserve Bank of Australia head office in central Sydney, Australia

In a speech on the payment system on Thursday, Reserve Bank of Australia (RBA) Governor Philip Lowe warned that regulators were reviewing the treatment of crypto-assets and cautioned investors about the risks involved in dealing with crypto-assets. ‘Buy.

The move comes as the government embarks on a major overhaul of Australia’s payments at $ 650 billion ($ 466 billion) a day over the past quarter century.

Lowe said the development of digital wallets will allow the exchange of tokens or digitally formatted currencies supported by the RBA.

“It’s a form of retail central banking digital currency (CBDC) – or eAUD,” Lowe said. “However, to date, we do not see strong public policy arguments for moving in this direction, especially considering Australia’s efficient, fast and convenient electronic payment system.”

Lowe said a case could emerge as technology evolves and there will be benefits to any digital payment token supported by the central bank.

“One lesson from history is that private sector investment and backed money often ends in financial instability and losses to consumers,” he added.

If private digital tokens or staplecoins are to grow, they must be supported by high-quality assets and meet the highest standards of security and security, he said.

He was skeptical of the need for cryptocurrencies that were not directly linked to the Australian dollar or supported by a particular company or asset, especially given their volatility. ($ 1 = 1.3943 Australian dollars)

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