Australia’s Central Bank: Cryptos Will Not Receive Wide Acceptance in the Near F

[Cisco]

Cryptocurrencies will not receive wide use in Australia as long as the local financial system is efficiently working, the Reserve Bank of Australia (RBA) stated in an official document issued on June 20.

According to the notice authored by analysts from RBA’s payments policy department, there is "little likelihood of a material take-up of cryptocurrencies for retail payments in Australia in the foreseeable future" due to a number of reasons.

In the document, authors outlined the so-called "scalability trilemma,” which means that crypto can at best solve only two out of the three basic features such as decentralization, scalability, and security. The paper states that cryptos will always lack some of the features in some way, which purportedly makes this type of asset less attractive. The document reads:

“In practice, these trade offs are incremental; increasing the scalability of a blockchain does not require it to become entirely centralised or insecure, but more centralised or less secure.”

Another obstacle to the wide acceptance of crypto assets is increased volatility, the RBA said in the document. In this regard, the authors also cited the much-discussed crypto project by social media giant Facebook, which was officially unveiled on June 18. Built as a stablecoin backed by fiat currencies, Facebook’s libra is expected to solve the volatility issue, the authors wrote, while still losing in terms of decentralization by relying on a central body to buy and manage the assets that back the stablecoin.

In the document, the RBA cited particular cases of attempted stablecoin launches in Australia, claiming that stablecoins’ use for payments “has been very limited” as “has the supply of Australian dollar-linked stablecoins.” The financial authority cited the first Australian dollar (AUD)-pegged stablecoin AUDRamp, which went live in September 2018 but completely lost its worth after 137 tokens were issued. The authors also cited the TrueAUD stablecoin, launched in April 2019 by TrustToken, claiming that “no tokens appear to have been issued” to date.

The RBA authors conclude that cryptocurrencies have not developed enough to represent a “compelling proposition that would lead to their widespread use in Australia” as long as the Australian dollar provides a “reliable, low-inflation store of value.” They write:

“Developments to date have also not added sufficiently to the overall reliability, functionality and credibility of cryptocurrencies to make them an attractive alternative to established payment systems for everyday payments for the population at large.”

Recently, Australia’s securities regulator released new initial coin offering and cryptocurrency guidelines, considering cryptocurrency to be a financial product, which requires involved parties to get an Australian financial services license.

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[Noverteno]

Bankers talk about cryptocurrency is one thing, moreover, as a rule, negative, but it rarely comes true. Predicting the level of development of cryptocurrency is not possible at all. Moreover, bankers are very biased in cryptocurrency, given that it is a direct competitor to the activities of banks. Therefore, what bankers say is not worth paying particular attention to.

[Bobcrypto]

The banking sector is already afraid of a complete take over of digital currency in near future hence you will be hearing different opinions to make banks very relevant in the current state of cryptocurrency and the blockchain effects.
Obviously, the war over crypto by various institutions and persons are almost geeting absorb and over. It is very clear that crypto will dominate the banking sector in a short time to come. Crypto is hitting moon soon.

[Noverteno]

Already more than 70 percent of the central banks of various countries plan to create their own stable coin, and this is the use of cryptocurrency, although it is specific and cannot bring profit to its owners. However, through stable coins, states will nevertheless come to use a decentralized cryptocurrency.