Stablecoins and CBDCs have “potential” according to the RBA

The Reserve Bank of Australia (RBA) has acknowledged the potential benefits of stablecoins and other emerging business models and technologies while highlighting challenges related to data collection on central bank digital currencies (CBDCs) if services are delivered through non-bank entities. In a submission to an inquiry on a new bill for regulating digital assets, the RBA stated that stablecoins raise important payments policy issues and have been used as a bridge between national currencies and the crypto ecosystem. The RBA expressed support for the development of regulatory frameworks for stablecoins that promote innovation while ensuring investor and user protection. It also emphasized the need for a risk-based regulatory framework for payment service providers and highlighted the risks associated with payment stablecoins and stored-value facilities. Regarding the bill’s proposal to collect data on foreign CBDCs, the RBA noted that the extent of visibility over Australian residents’ use of foreign CBDCs would depend on design features and the involvement of authorized deposit-taking institutions (ADIs) in providing digital wallet services. The RBA suggested considering appropriate mechanisms to monitor foreign CBDC use in light of evolving design features. The RBA is actively engaged in CBDC research but has not made a decision on issuing a CBDC in Australia.