Central Banks of Australia and New Zealand Won’t plan to issue own Cryptocurrency
In a speech calling Bitcoin ‘fascinating’ but ‘inefficient,’ the central bank of Australia and New Zealand denied they would issue their digital currencies.
Speaking the Australia Business Economist in Sydney, the head of the Reserve Bank of Australia (RBA) payment policy, Mr. Tony Richards, seemed hawkish on digital currency as Australia’s government devotes significant funds to blockchain research.
He stated about bank issuing its own token:
“It’s not a high priority for us, but it’s something we’re continuing to work on. We are especially looking at the aspect of whether or not a central bank cryptocurrency for B2B use might be valuable.”
Australia’s 2018-19 budget allocated over half a million dollar for blockchain. As reported prior this month that digital currency users meanwhile continue to feel the pressure from authorities cracking down on investment activities.
Tony Richards himself gave a mixed impression of bitcoin, criticizing its network while showing appreciation for how it operated.
“Nine years after its launch and about five years since it entered the public consciousness, Bitcoin continues to have structural flaws that make it unsuitable for many uses, many of which stem from its inefficient verification process.”
Reuters reports, in New Zealand meanwhile, the central bank figures further voiced concerns about their own token, remaining uncertain about its “conclusive benefits.”
“These risks recognized, cryptocurrencies and distributed ledgers are fascinating developments both from payments and a broader economic perspective.”