Facebook’s Libra is not Welcome in Australia According to RBA
The Reserve Bank of Australia has serious doubts about Libra’s success within the nation. In an article published by afr.com on January 9, the RBA sustains that even if it meets all regulatory requirements, there won’t be enough demand for domestic payments in the stablecoin.
The RBA’s Opinion
Even if Libra manages to meet global regulatory requirements, it is unclear if there will be a strong demand for global stablecoins, particularly for domestic payments. This is the opinion of the Reserve Bank of Australia indicated in the submission made to the Senate Select Committee on Financial Technology and Regulatory Technology.
According to the RBA, the digital payment methods available to retail customers are already efficient and there is no need to introduce a new service of this type. The bank specifies that the introduction of a central bank digital currency (CBDC) would not currently have any positive effects either. The RBA claims that existing solutions such as the NPP, which utilizes funds held in accounts at prudentially supervised financial institutions, are able to meet market demand.