The Australian central bank has said it sees no need to issue a central bank digital currency, bucking the trend towards CBDCs with central banks around the world.
According to reports, the Reserve Bank of Australia said in a recent paper on payments that it was skeptical of the benefits of CBDCs, as well as expressing concerns over private stablecoins and their potential impact on the monetary system.
The bank said in light of the country’s new real-time payments platform, there was no strong policy argument for embracing a centrally issued digital currency. Furthermore, with Australians more reluctant than people in other countries towards switching from cash to digital payments, the bank said there was presently no impetus to move towards a digital currency.
Notably during the COVID-19 pandemic, cash usage has actually increased across Australia, with the bank pledging to support paper banknotes “for as long as Australians wish to keep using them.”