{"id":475190,"date":"2022-07-18T08:29:07","date_gmt":"2022-07-18T05:29:07","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/australian-central-bank-governor-favors-private-sector-crypto-technology\/"},"modified":"2022-07-18T08:29:07","modified_gmt":"2022-07-18T05:29:07","slug":"australian-central-bank-governor-favors-private-sector-crypto-technology","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/australian-central-bank-governor-favors-private-sector-crypto-technology\/","title":{"rendered":"# Australian central bank governor favors private sector crypto technology"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a41276875dbd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a41276875dbd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/australian-central-bank-governor-favors-private-sector-crypto-technology\/#%E2%80%9D_Australian_central_bank_governor_favors_private_sector_crypto_technology_%E2%80%9C\" >&#8221; Australian central bank governor favors private sector crypto technology &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Australian_central_bank_governor_favors_private_sector_crypto_technology_%E2%80%9C\"><\/span>&#8221; Australian central bank governor favors private sector crypto technology &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNWJjZDg5OTQtNzczYi00Mjg2LWJhOWItZjZhNjY3ZjMwMGIxLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>Australian central bank Governor Phillip Lowe said that a private solution \u201cis going to be better\u201d for cryptocurrency as long as risks are mitigated through regulation.<\/p>\n<p>Lowe commented at a recent G20 finance meeting in Indonesia. Reuters <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/markets\/currencies\/privately-issued-digital-currencies-likely-better-australia-cbank-chief-2022-07-17\/\">reported<\/a> on Sunday that officials from other countries discussed the impact of stablecoins and decentralized finance (DeFi) on global financial systems.<\/p>\n<p>Recent risks associated with stablecoins can largely be chalked up to depegging events. In May, the Terra USD stablecoin, TerraUSD (UST), which has since changed to TerraUSD Classic (USTC), lost its peg and drove down the value of the entire Terra Classic ecosystem. It caused a multi-billion dollar cascade effect leading to Tether (USDT) and the DEI stablecoin briefly depegging.<\/p>\n<p>Lowe suggested that strong regulations or even state backing could help mitigate the risks to the public:<\/p>\n<blockquote><p>\u201cIf these tokens are going to be used widely by the community, they are going to need to be backed by the state or regulated just as we regulate bank deposits.\u201d<\/p><\/blockquote>\n<p>While the regulations would come from the government side, Lowe noted that the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> would be best if it were developed by the private sector. In his view, private companies are \u201cbetter than the central bank at innovating\u201d the best features for cryptocurrency. <\/p>\n<p>He added, \u201cthere are also likely to be very significant costs for the central bank setting up a digital token system.\u201d<\/p>\n<p>The National Association of Federally-Insured Credit Unions shared Lowe\u2019s skepticism about implementing a digital token\u00a0by central banks due to high costs in a letter to the United States Commerce Department, according to Cointelegraph on July 8.<\/p>\n<p>However, his view on the costs of digital token systems such as\u00a0central bank digital currencies (CBDC)\u00a0is not echoed by the countries currently developing or experimenting with CBDCs\u00a0such as China, the European Union\u00a0and the Bahamas.<\/p>\n<p>In the same G20 meeting, Hong Kong Monetary Authority CEO Eddie Yue backed Lowe\u2019s opinion that stablecoins should be scrutinized more closely. He said that reliable stablecoins would, in turn, reduce risks in DeFi, where stablecoins act as the main transactional currency.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Aussie FPA supports &#8216;crypto rule book&#8217; and regulation of exchanges<\/em><\/strong><\/p>\n<p>Referring to DeFi and stablecoins, Yue said, \u201cthe technology and the business innovation behind these developments are likely to be important for our future financial system.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/australian-central-bank-governor-favors-private-sector-crypto-technology\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Australian central bank governor favors private sector crypto technology &#8220; Australian central bank Governor Phillip Lowe said that a private solution \u201cis going to be better\u201d for cryptocurrency as long as risks are mitigated through regulation. Lowe commented at a recent G20 finance meeting in Indonesia. Reuters reported on Sunday that officials from other&#8230;<\/p>\n","protected":false},"author":1,"featured_media":475191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNWJjZDg5OTQtNzczYi00Mjg2LWJhOWItZjZhNjY3ZjMwMGIxLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,75022,20358,70934],"class_list":["post-475190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-central-bank","tag-australia","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=475190"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/475190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/475191"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=475190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=475190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=475190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}