HomeBitcoin NewsAustralia's Central Bank Says It's Unlikely Bitcoin Will Succeed Down Under

Australia’s Central Bank Says It’s Unlikely Bitcoin Will Succeed Down Under

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A senior official at the Reserve Bank of Australia (RBA) has said that Bitcoin is unlikely to succeed in the country due to the stability of the Australian dollar.


No Place for Bitcoin

Dr. Tony Richards, head of payments policy at the RBA, was the one making the comments. According to Dr. Richards, he doesn’t see Bitcoin having an impact on monetary policy or the financial system in Australia, reports News.com. He said:

When a country doesn’t have a credible currency, then people might look for other ones.

In his opinion, the Australian dollar is a stable currency, and he stresses Australia has had low and stable inflation for the past 25 years. He added:

The likelihood that we’d have significant adoption of an alternative currency seems to be pretty low.

Dr. Richards has owned Bitcoin since 2014. However, he said that it’s unlikely Bitcoin will be considered a store of value in Australia. This is due to the fact that Australia has a safe and stable banking system compared to Bitcoin’s volatility.

Reserve Bank of Australia official says Bitcoin will have little impact in Australia.

The price of Bitcoin fell to its lowest level in 2018 over the weekend, dropping to $5,826. Consequently, it surpassed its previous low of $6,048 on the 6th of February. With the possibility of Bitcoin dropping even lower, 2018 could prove to be a bad year for the cryptocurrency.

New Zealand has also ruled out the possibility of a central bank digital currency (CDBC). The Reserve Bank of New Zealand said that while it was keen to explore the blockchain, it wasn’t sure what conclusive benefits a CBDC would bring, reports Channel News Asia.

Yet, even though market prices are far from good, that’s not stopping other jurisdictions from considering their own CBDC.

Bahamas to Pilot Its Own CBDC

Last Friday, it was reported that the Central Bank of the Bahamas had announced plans to introduce a pilot digital currency for the country, reports the Jamaica Observer.

The move is considered important for the country. This is because many banks have downsized and removed themselves from communities. As a result, many have been left with no banking services. K Peter Turnquest, Deputy Prime Minister and Minister of Finance, said:

As an island nation, where transportation can be an inconvenience for many, especially the elderly, and costly, we must offer financial services digitally and securely.

Another country that is considering their own CBDC is Sweden. The country is also actively moving toward a cashless system.

Do you think other jurisdictions will consider CBDCs? Let us know in the comments below.


Images courtesy of Shutterstock.

Rebecca Campbell
Rebecca Campbell
Rebecca Campbell is a freelance bitcoin and blockchain journalist based in England. She has a keen interest in the blockchain space and the use cases the technology is being in and is excited to see what new changes the distributed ledger brings to our day-to-day lives.

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