RBA: Libra may struggle to succeed in Australia; there is currently no need to issue a CBDC

The Reserve Bank of Australia (RBA) recently stated that it has been closely monitoring the development of cryptocurrencies such as Bitcoin and believes that it is still unclear whether there will be strong domestic demand. It stated that these developments could also affect its responsibilities as a banknote issuer and operator of the country's real-time general settlement system, as well as its responsibility for "stability of the financial system and stability and efficiency of the payment system." "Our current assessment is that the cryptocurrencies we have seen so far do not provide the currency's conventional functions, which explains why it is not widely used as a payment method in Australia." It states that newer cryptocurrencies are emerging, or It has been proposed to seek to address some of the shortcomings of early iterations. The next generation of cryptocurrencies may become more widely used in the future. RBA said that given the participation of several companies, the Libra project is likely to be widely used and may be able to take advantage of these companies' vast existing user base and technical capabilities. The RBA agreed with G7's previous decision, stating that the private sector's global stablecoin initiative should not be allowed to launch until all risks and regulatory requirements have been addressed. In Australia, even though global stablecoins do meet all regulatory requirements, it is unclear whether they will have strong demand, especially for domestic payments. Australia already has a series of low-cost and efficient real-time payment methods. In recent years, some new non-bank digital participants have entered the market to provide Australians with cheaper and faster money transfer services. Regarding CBDC, the RBA stated that it is not necessary at this time.