Australia and New Zealand do not intend to issue state digital currencies in the foreseeable future

Australia and New Zealand do not intend to issue state digital currencies in the foreseeable future

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Australia and New Zealand excluded the possibility of launching national digital currencies, at least in the foreseeable future. This is written by CoinDesk.

Tony Richards, head of the Reserve Policy Department at the Reserve Bank of Australia, said his department recognizes that there is a small demand for such a tool, but if the general public accepts electronic money, this will not exclude “significant influence on the bank’s competence in the matter of financial stability.”

Richards explained that he opened the bitcoin-wallet in 2014 and used it for personal purposes, while also noting that cryptocurrencies have “structural drawbacks” that limit their potential. He also said that “the problems of scalability and management in the bitcoin system” make it uncompetitive against the background of traditional payment methods such as Visa.

“Commission costs and queues from unconfirmed transactions made it necessary to raise the question of how bitcoin and other cryptocurrencies cope with their tasks if we consider them in the context of key aspects of money. They should be a means of accumulation, a means of exchange and a unit of calculation. I think there is a generally accepted opinion on this issue,” he said.

Speaking about the digital currency of the central bank or “eAUD”, as its head Philip Lowe called it, Richards noted that such a tool is not mandatory in the modern financial system.

“At least now the new form of electronic money issued by the Reserve Bank for households is not something that we are actively striving for. Based on contacts with counterparts in other countries, we can state that this issue is not a priority among most central banks in advanced economies,” he said.

The Governor of the Reserve Bank of New Zealand, Geoff Baskand, supported his colleague and said that such a digital currency would not be stable, citing the problem of scalability and long time confirmation of transactions.

“At the current stage, it is yet to be determined what advantages the digital currency of the central bank will have. While talking about the possibility of issuing such a digital currency is too early, “- said Baskand.

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