Australia plans to issue its own digital currency while introducing a framework for cryptocurrencies, said Treasurer Josh Frydenberg, according to the portal nine.com.au.
The Treasurer confirmed that the government and the Reserve Bank are now examining the possibility of creating a CBDC.
“And, undoubtedly, this is a rapidly changing field. A digital revolution is taking place in our financial sector,” he added.
Frydenberg noted that cryptocurrencies must operate under a well-thought-out regulatory framework.
“We want to bring them out of the shadows,” the official emphasised.
The government wants exchanges and crypto companies to obtain financial licences.
“This will give consumers greater confidence and trust in the counterparties they deal with,” Frydenberg said.
Over the past decade, more than 800,000 Australians have owned digital assets at least once, the treasurer said. He described cryptocurrencies as a “rapidly evolving area” that the government needs to get ahead of.
Frydenberg warned that Buy Now, Pay Later services and digital wallets would also face heightened regulatory scrutiny.
The Reserve Bank of Australia is involved in the ‘DANBAR’ project testing cross-border CBDC settlements under the BIS.
Follow ForkLog on Twitter.