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The leadership of the Central Bank of Australia believes that stablecoins can be more efficient and preferable than digital currencies issued by the Central Bank.
Phillip Lowe, during a panel discussion at a meeting of financial officials of the G20 countries in Indonesia, said that consumer-oriented digital assets issued by private companies may be better than tokens issued by a central bank.
“I tend to think that a private solution would be better — if we can properly set up regulatory mechanisms in the stablecoin market,” Lowe said.
The official believes that it is impossible to use stablecoins on a global scale without proper supervision is impossible:
“If these tokens are to be widely used by the community, they should be supported by the state or regulated in the same way that we regulate bank deposits.”
The head of the Hong Kong Monetary Authority, Eddie Yue, said in response to a colleague that a closer study of stablecoins can help reduce the risks of decentralized financing projects (DeFi), which are part of the cryptocurrency ecosystem:
“Despite the Terra-Luna incident, I think cryptocurrencies and DeFi will not disappear – although they can be contained, as the technologies and innovations underlying these developments are likely to be important for our future financial system.”
During the discussion at the meeting of representatives of the G20, Lowe, Yue and other participants agreed that more needs to be done to create an international system for regulating stablecoins and the crypto industry as a whole.
In May, the consumer protection group Choice from Australia issued a call to introduce regulation of the cryptocurrency market in the country as soon as possible to ensure the protection of users.
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