Stablecoins have the potential to take a more prominent position in the financial system. This is stated in the draft law of the Reserve Bank of Australia (RBA) on the regulation of crypto-exchanges, custodial services and the issuance of “stable coins”.
Most of the document is devoted to stablecoins. The Central Bank sees the potential of the asset class, recognizing the need to develop a regulatory framework.
“The RBA supports the development of stablecoin regulatory mechanisms that support innovation by providing adequate safeguards for investors and users,” the project says.
The Central Bank noted that stablecoins can be “widely used for payments.”
The regulator has not made a decision regarding the issue of CBDC, but is engaged in active research in this area, the document says. The Central Bank noted that national digital currencies can increase the efficiency of domestic payment systems and be used in cross-border payments.
“It is possible that in the future CBDCs could be issued to non-residents and potentially be used outside of the jurisdiction of the issuer,” the document says.
The RBA also did not rule out the use of foreign national digital currencies by citizens of the country. This may require the collection of data from authorized deposit-taking institutions such as banks and credit unions.
The regulator made it clear that it would not approve fintech companies and foreign central banks in this capacity.
Recall that in March 2022, the local ANZ Bank issued the A$DC stablecoin.
In January 2023, the media reported on National Australia Bank’s work to create a secured “stablecoin” AUDN.
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