Australia’s central bank has given a dissertation to the growing popularity of cryptocurrencies like Bitcoin in a parliamentary committee testimony.
The Reserve Bank of Australia (RBA) has supported the increasing list of regulatory counterparts around the world in deliberating its regulatory snippets and outlook on cryptocurrencies.
Former this month, the deputy director of the Philippines’ central bank stated about the “advantage of the using Bitcoin”. Thus, by addressing them as “fast, near real-time and convenient.”
On Friday, RBA’s head of payments Tony Richards spoke the central bank had famed “that Committee members have shown interest in digital currencies or cryptocurrencies.” The official also said that the authority is regularly monitoring the theme of cryptocurrencies and blockchain technology.
The central bank had not related the regulation of cryptocurrencies as payment instruments, the official disclosed.
“From the Bank’s payments policy mandate, digital currencies do not currently appear to raise any pressing regulatory issues”.
The Australian central bank on considering of cryptocurrency as payment options difference to those of its regulatory counterparts in Vietnam and Indonesia. Since it is for who banned the use of cryptocurrency as the method of payment.
Richards addressed the usage of Bitcoin and other digital currencies as the real method of payment remains moderately limited. He also said to the parliamentary committee that cryptocurrencies “can serve as a means of payment in the illegal economy”. He continued, their use may have some suggestions for tax authorities. Thus, they raise more significant issues for authorities tasked with crime stoppage and exposure.
Further, he quoted:
“The distributed and cross-border nature of digital currencies like Bitcoin means that regulation of the core protocols of these systems is unlikely to be effective”.
The official admitted negligence of analyzing towards the “longer-term prospects” of private digital currencies such as Bitcoin. However, it was by the central banker that the sweeping potential of cryptocurrencies’ underlying technology, the blockchain.
Richards said the parliamentary committee:
“The greatest potential is likely to be in sectors where workflows involve lots of different parties with no trusted central entity, and where current practices are quite inefficient. Some frequently suggested financial sector use cases include correspondent banking and remittances, as well as trade financing”.
Couple of days back, the Australian Securities and Investments Commission (ASIC) introduced the guidelines for startups to raise funds through ICOs.
“In few cases, the ICO will address to the general law and the Australian consumer laws regarding the offer of services and products”. The ASIC noted while disclosing it determined the ICO potential to raise the funds. “In some other cases, the ICO may be addressed as the Corporation Act,”
Recently, the government of Australian divulged draft laws influencing an “enhanced regulatory sandbox”. Since it is for startups and ICO operators to function without a full license.