Reserve Bank of Australia: Regulating Blockchain Protocols ‘Unlikely to Be Effective’

According to the officials, for the Reserve Bank of Austrlia’s payments policy, cryptocurrencies don’t constitute pressing regulatory issues currently. A range of issues including the institution’s views on cryptocurrencies and blockchain were discussed last week by Tony Richards and David Emery, officials from the Reserve Bank of Australia’s payments policy department who appeared before the Australian House of Representatives Standing Committee on Tax and Revenue.

They noted that any rule-making around the core protocols that make up blockchain networks would likely not be supported by the central bank stating,

“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.”

They said,

“From the Bank’s payments policy mandate, digital currencies do not currently appear to raise any pressing regulatory issues.”

This show how the Australian central bank gives importance to technology taking hold that highlights industries with lots of intermediaries could gain most of the benefits. The two said, “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.”

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