Philip Lowe, the governor of the Reserve Bank of Australia, has reiterated intentions for launching an Australian national digital currency.
It’s no longer surprising that many central banks around the world are increasingly exploring and studying the possibility of launching a national digital currency (known as a “CBDC”). In fact, the Bank of International Settlement confirmed in a survey that about 80 percent of central banks planned for a CBDC.
Banks can use digital currencies for settlements
While speaking with the Melbourne Business Analytics Conference on Monday, the governor mentioned that the Australian central bank “is conducting research on the technologies and policy implications of a potential wholesale central bank digital currency.”
The world is gradually transitioning to digital alternatives for payment, especially since the cash bans of outbreak of the coronavirus pandemic.
Lowe said technology (blockchain) and data are unlocking this new possibility through digital currencies. Through distributed ledger technology, many big banking institutions could use digital currencies in the future to support the settlement of transactions in the inter-bank payment system, instead of transacting in “regular” Australian dollars.