The Reserve Bank of Australia’s (RBA) about-face on the viability of a central bank digital currency speaks volumes for the huge potential of cryptocurrencies in Australia, and could represent a critical turning point for driving mainstream adoption.
The groundswell behind cryptocurrencies in Australia and growing regulatory appetite for their adoption by Australian financial institutions has been underscored by an important series of milestones in recent months.
Yet the journey towards a CDBC in Australia has been rocky at best. While this week saw bitcoin surge past $US23,806 ($A31,445) due to burgeoning institutional and corporate interest, there is still a long way to go towards helping unlock the regulatory barriers towards crypto’s mainstream adoption in Australia.
That is the view of Jonathon Miller, managing director for Kraken in Australia.
Speaking to Stockhead, Miller said Australia had reached a critical inflection point — particularly given moves by Australia’s international counterparts in adopting CDBCs, as well as the RBA’s new stance that sent strong signals to the market about the long term viability of a central bank digital currency in Australia.
“The most interesting aspect of the RBA’s undertaking of a wholesale central bank digital currency is that it represents a complete backflip on their previous view that CBDCs are of no benefit to Australian consumers” Miller said.
Last month, the RBA announced its partnership with two of Australia’s Big Four banks, fund manager Perpetual and a blockchain company to explore the potential of a central bank digital currency (CBDC) capable of use by wholesale market participants.
Read more: https://stockhead.com.au/tech/rba-backflip-a-boon-for-cryptos-mainstream-adoption/