Cryptocurrencies will need regulation, according to a statement made by the Reserve Bank of Australia. Replying to a digital currencies enquiry made by the Senate Economics References Committee in Australia, the central bank has advocated for the Bank of International Settlements (BIS) to step in.
For the community of cryptocurrency users, this sounds as nothing but a nightmare. After digital currencies were proclaimed as an alternative to the fiat money created by global central banks, the BIS is the last institution which may appeal to a large number of digital currency users.
Known as the central bank of the central banks, the Bank of International Settlements aims to introduce more predictability and transparency into the mysterious world of central banking. It boasts 60 member central banks, and regularly issues studies on the state of the currencies and derivatives markets.
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What the Reserve Bank of Australia advocates is that only an international body will have the global reach necessary for intervention in the digital currency marketplace.
Highlighting that a coordinated response might be necessary in the future, as adoption of digital currencies grows, the RBA points at the Committee on Payments and Market Infrastructure (CPMI) at the BIS.
The Australian central bank cryptocurrencies represent an “interesting development” in the payments and financial system landscape. However, it also explains that the adoption rates of cryptocurrencies is currently very low in order to justify the RBA’s involvement as a regulator, especially considering the global landscape on which digital currencies function.