Consumer-focused issues issued by private companies, the Governor of the Reserve Bank of Australia said on Sunday. cryptocurrenciesHe said that these companies could be better than central bank-issued tokens if properly regulated.
Phillip Lowe spoke on a panel posted online at the G20 meeting of financial officials in Indonesia.
Representatives of Australia and G20 Countries Talk About Crypto Assets
In the same panel, the chairman of the Hong Kong Monetary Authority (HKMA) said that further scrutiny of such tokens is necessary. bitcoin He said it could also help mitigate risks from decentralized finance (DeFi) projects that are part of the cryptocurrency ecosystem.
Many central banks around the world are developing various central bank digital currencies (CBDCs), either retail tokens to be used directly by consumers or wholesale tokens to be used by banks within the financial system.
“If these tokens are to be widely used by society, they will need to be backed by the government or regulated just like we regulate bank deposits,” Lowe said.
“Private Cryptocurrencies Work Better Than Central Bank Digital Currencies”
Lowe, head of the Reserve Bank of Australia, continued his speech as follows:
“I tend to think that if we can get the regulatory arrangements right, the private solution will be better because the private sector is better than the central bank at innovating and designing features for these tokens, and also setting up a digital token system is likely to have significant costs for the central bank.”
Lowe and his panelist colleagues agreed that more needs to be done to create a strong enough regulatory system for such tokens.
*Not investment advice.