Privately Issued, Regulated Digital Currencies, According To An Australian Central Banker, May Have Advantages.

According to Reuters, Australia’s central bank head stated today during a panel discussion that consumer-focused digital tokens issued by private enterprises would be preferable to tokens issued by the central bank if they can be adequately controlled.

“If these tokens are going to be widely used by the community, they are going to need to be backed by the state, or controlled just like we regulate bank deposits,” Phillip Lowe said at a conference of G20 finance officials in Indonesia.

If the regulatory arrangements for the digital currencies can be made properly, he continued, “I tend to think that the private solution is going to be better because the private sector is better than the central bank at innovating and designing features for these tokens.”

According to Reuters, Lowe and the other panelists agreed that more needs to be done to develop an effective regulatory structure.

The collapse of stablecoin TerraUSD and its linked token Luna in May threw the cryptocurrency markets into a tailspin, underscoring the threat to financial systems, the research stated.

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