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Reserve Bank of Australia: Stablecoins can play an important role in the financial system

Stable digital coins could play an important role in Australia’s economy and financial system. This is stated in a new report of the Reserve Bank of the country (RBA).

“Stablecoin activity in Australia to date has been relatively limited, although stablcoins may play a more prominent role in the financial system in the future,” the report says.

The RBA recognizes that stablcoins will need a strong regulatory framework:

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“The RBA supports the development of regulatory mechanisms for stablocoins that support innovation while providing appropriate safeguards and protections for investors and users.”

The central bank reminds us that no decision has yet been made on the implementation of the digital Australian dollar. However, the bank is “actively involved” in research on the state digital currency (CBDC). The RBA believes that most countries that have issued CBDCs use it “to improve the efficiency of their domestic payment systems.”

In the spring, the RBA worked with the Digital Finance Corporate Research Center (DFCRC) to launch a pilot project exploring options for the state’s steblicoin. The central bank has begun testing the digital Australian dollar in offline payments, corporate settlements, auctions and securities trading with highly liquid assets.

In March, the National Australia Bank (NAB) reported a successful cross-border transaction using the AUDN stablecoin pegged to the Australian dollar.