The central Reserve Bank of Australia or RBA has recently stated their opinion on the subject of cryptocurrencies and the blockchain technology that powers it. Two officials from the Payments Policy Department within the bank, Tony Richards and David Emery, have stated that the bank does not plan or support any efforts that would regulate the blockchain networks or cryptocurrency for that matter.
Stated at a hearing before the Australian House of Representatives Standing Committee on Tax and Revenue towards the end of October, the officials stated why it would not be in the banks best interest to regulate the technology.
The two stated that “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. From the bank’s payments policy mandate, digital currencies do not currently appear to raise any pressing regulatory issues.”
The position of the bank on digital currencies and the underlying blockchain technology that they use has continued to be consistent since 2015. The costs of attempting to regulate the currency are far outweighed by the benefits that the currency could provide to the country. One piece of regulation that the country does want to employ is the use of cross-border regulation, because of the high amount of disruption it could cause to the remittance industry across the world. The bank however does not plan to solely regulate it, they would like to help the market run in a safer and more beneficial way to all.
The two stated recently that “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.”
Hopefully other countries will follow suit instead of insensibly attempting to regulate the market.