Australia's central bank proposes full issuance of digital currency Australian dollar

Rage Review: The Reserve Bank of Australia is the central bank of Australia. It was established in 1959. Its main responsibilities are to formulate and implement monetary policy, maintain the stability of the financial system, manage foreign exchange reserves, issue banknotes and act as an agent for the treasury, etc. Australia has always been at the forefront of this blockchain technology revolution. Not only did the three major Australian banks all join the R3 CEV blockchain alliance at the first time, but the Australian Stock Exchange also invested heavily in the blockchain startup DAH and clearly announced that it is considering using blockchain technology to fully upgrade its securities trading system. Following the statement of the People's Bank of China, the Reserve Bank of Australia also stated that it is fully exploring digital currency and blockchain technology.

Translation: Annie Xu

At the 2016 Innovation Payment Conference in Sydney, Tony Richards, head of the Reserve Bank of Australia’s Payments Policy Department, announced that the Australian central bank is conducting research into digital currencies and blockchain payment systems.

He even suggested that the Australian dollar should be converted into a digital currency at some point in the future, stating:

In the more distant future we may see the Australian dollar in the form of a digital currency.

Payments Policy Department: Tony Richards

Tony Richards said that while central banks are conducting in-depth research into the technology with a focus on Bitcoin, they are not currently actively considering issuing digital currencies.

Like other government and central bank leaders, Tony Richards believes that central banks can issue digital currencies as long as a specific agency oversees them.

“A feasible solution is for the central bank to issue currency, and then the authorized agency to supervise currency transactions and circulation. Of course, existing financial institutions may be involved.”

He also raised the risks of state-issued digital currencies:

Despite the security risks of network and cryptographic systems, I personally look forward to seeing the full issuance of digital currency around the world in the future, rather than a short-term trial.

Tony Richard may not see digital currencies going mainstream anytime soon, but he still expects to see blockchain technology used to improve Australia’s securities clearing infrastructure.

He said:

The central bank is mandated by the Australian government to regulate clearing and settlement institutions, and the Australian Securities Exchange Group (ASX)'s plans to develop distributed ledgers will clearly benefit it.