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RBA: There’s No Need for Australian Dollar-Backed Crypto

Michelle Bullock, the managing assistant of RBA, has expressed her thoughts about the crypto Australian dollar by saying that she doesn’t believe there’s an actual need for it, as stated by the Australian Financial Review.


 

In contrast, the assistant governor also said that the crypto technologies pique her interest and she would like to see the gaps they create be filled.  However, in general, she doesn’t see any reason for it to be considered in any significant way.

She made the statements after speaking to various news organizations from Sydney’s banking and financial conference. The conference saw investors, aficionados, and companies gathering to speak about business, finance and fintech.

Pros and Cons

Central banks could benefit from cryptos in order to solve the problem of negative interest rates, but this is still a grey area that needs a lot of testing and analyzing before making any major decisions within the economy, she added.

According to Bullock, cryptocurrencies don’t add a benefit, nor are they practical to use. She believes a thorough case-study  analyzing it from every perspective can help us understand its potential applications in order to think about adopting it, also why can’t existing payment methods act as a dispersed ledger.

Michelle exclaimed that as financially efficient as digital coins can be, the other costs in the system are considerable and not particularly germane. She stated that it’s not a prerequisite because the current gaps we are trying to work around when it comes to crypto don’t at all exist in the all digitized currency systems, which makes the exchange extremely practical and fast.

Four months ago, BTC was described as interesting but impractical by Tony Richards from the same organization. He stated that the issuance and usage of cryptocurrencies were officially dismissed as not being on the top of the priorities list. Despite this, it’s still on the list, however, to potentially revisit in the future.

Thomas Moser, the board director of SNB concluded that cryptocurrencies and the crypto space are still too primordial to get into the current digital currency space. After comparing blockchain to CDs, Thomas said that it was an inadequate creation and people are afraid of the new. They would only look to crypto if it is cheaper or offers a significantly better service. If these requirements are fulfilled, BTC will be the new age of CDs and savings.

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