Private crypto companies have better ability, says Australian central bank governor

The governor of the Australian Central Bank shared his opinion on the crypto regulation system and the ability of private crypto companies in digital innovations. 

Around 13 years have been completed by the Crypto industry. The whole game started with bitcoin and now we are at that point where huge numbers of crypto & blockchain developers are showing their talent through innovations in the crypto industry. No doubt that the decentralized nature of cryptocurrencies is getting worse with the revolution of new cryptography protocols but these new developments are much better to provide highly efficient payment solutions.

Reuters reported that, During a G20 finance meeting in Indonesia, Phillip Lowe- governor of the Australian central bank- appreciated the role of private Crypto companies to create a digital currency. The whole discussion revolved around Defi & stablecoins impact on the global financial system. 

Lowe said that a strong crypto regulation framework or strong support of the state may help to mitigate the risks associated with cryptocurrencies.

“If these tokens are going to be used widely by the community, they are going to need to be backed by the state or regulated just as we regulate bank deposits.”

According to the Australian Central Bank governor, the perfect crypto regulatory framework will come from the government but perfect digital currency can be developed by private crypto companies. Lowe said that cost-effective and highly feature-based digital currency can be developed more perfectly by private companies, which will be much better than the development works by the Central Bank.

However innovations & features in a sovereign digital currency could be better if developed by private crypto companies but the question of costs to develop digital currency is not a usual thing here because in the past China, the European Union, and the Bahamas completed their work on Central Bank Digital Currency (CBDCs) and they never talked about the costs of development of CBDCs.

In this meeting, Eddie Yue, CEO of the Hong Kong Monetary Authority, shared his opinion on the regulation of stablecoins. Yue said that stablecoins can be easily regulated and also should be restricted under a strict regulatory system because these stablecoins are playing the role of fiat currency on the Defi platforms. 

Read also: Paraguay’s crypto bill waiting to get green light from the president