Reserve Bank of Australia Sees No Rush in Launching A CBDC; Aussie Banknotes Are Working

As other nations are rushing to launch central bank backed digital currency dubbed CBDC, Australia is not joining the bandwagon.

As per the Australian local news platforms, the Reserve Bank of Australia recent payments paper indicates that the bank is taking a cautious stand when it comes to CBDCs and privately issued stablecoins.

According to the australian central bank, there is no urgent case or need to introduce a CBDC in the country. The regulator argues that the country has an efficient, real-time payment platform which eliminates the need of a CBDC.

In addition, the regulator notes that the use of cash for transactions is decreasing in the country as Australian citizens are getting rid of banknotes just like in other countries like Sweden.

According to the central bank, despite the COVID-19 crisis in the country, the demand for cash has gone up. In this regard, RBA has committed to continue making it easy for Australians to access banknotes “for as long as Australians wish to keep using them.”

The Reserves Bank’s paper also explored the projects being carried in China, Sweden and Canada – some of the countries which have taken the CBDC initiatives proactively.

When it comes to Sweden, the RBA says that the country has witnessed a significant decrease in the use of cash for a number of years hence the need for Riksbank to come up and test the use of e-krona.

In Canada’s case, the country’s central bank has been preparing itself to provide CBDC when the opportune time comes. The Canadian central bank has envisioned two scenarios when CBDC can be beneficial – a collapse in use of fiat money for normal transactions as well as a threat to the country’s monetary policy as a result of growth and development of privately issued digital money.

The RBA’s report also touches on Facebook’s Libra stating that it still remains a dream and is following closely on whether it be granted regulatory approval to operate in various jurisdictions.

The Australian central bank also opined that the Chinese CBDC project which is at an advanced stage is largely informed by the popularity of private-sector e-money wallets like WeChat and Alipay.

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Author: Joseph Kibe

Expert Believes Petro Cryptocurrency Is Helping Venezuelan People Bypass Sanctions

Expert Believes Petro Cryptocurrency Is Helping Venezuelan People Bypass Sanctions
  • Cryptocurrency adoption is steadily increasing in Venezuela.
  • The South American nation’s citizens have suffering from one of the worst economic crises in history with the Bolivar becoming practically worthless.

Venezuelan Petro Moves Towards A New Phase

The Petro is now accepted in many shops in the country, according to Ricardo Baptista, the director of the Latin American Cryptoeconomy Corporation, the Venezuelan government wants to help the economy by promoting the use of virtual currencies, including the government-backed Petro.

The goal is to solve the many problems that the current Venezuelan economy is experiencing.

Using Virtual Currencies In Order to Circumvent International Sanctions

Mr. Baptista explained that the government of Venezuela is currently promoting the use of virtual currencies in order to improve its economy. The main goal is to avoid the negative effects of a massive blockade on the Venezuelan economy. Using virtual currencies, the country is able to evade these sanctions.

He has also mentioned that virtual currencies are now being used by the Venezuelan population and are starting to think in a different way the financial culture they have.

On the matter, he commented:

“Our currency, the bolivar, has been hit hard and what we are looking for is that financial technology is that the bolivar has a value, not on paper, but as a digital asset.”

During a conversation with the radio show “A tiempo,” which is broadcasted by Unión Radio, he said that cryptocurrency adoption was growing in the country due to the proliferation of different businesses and content distribution companies. Indeed, digital assets are currently being used for online payments, purchases and more.

The country is experiencing a very hard crisis in which individuals are not able to have access to basic goods and other services. Cryptocurrencies could have a positive effect on the economy and the population that is living in a very difficult situation.

The government has decided to create a digital currency called The Petro that tried to diminish the effects of these sanctions on the population. Although it has not been used for a long period of time and many experts believe that it was never going to be used by people in the country, it seems that there are some individuals already using it.

As reported by José Antonio Lanz, a Venezuelan crypto journalist, there are some businesses that have implemented the currency and it can be traded in six local exchanges. At the moment it is not possible to provide a positive future for the digital currency since the United States has imposed strict sanctions against those who deal with the virtual currency.

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Author: Carl T