“Stablecoin activity 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 said.
The RBA acknowledges 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 protection 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 government digital currency (CBDC) research. The RBA believes that most countries that have issued a CBDC use it “to improve the efficiency of their domestic payment systems.”
In the spring, the RBA, together with the Corporate Digital Finance Research Center (DFCRC), launched a pilot project to explore options for using the state stablecoin. The Central Bank began testing the digital Australian dollar in offline payments, corporate settlements, auctions and trading in 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.
Source: Bits
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