Australia`s Central Bank explores Blockchain technology

Australia`s Central Bank explores Blockchain technology

The Reserve Bank of Australia has recently published an assessment that sheds light on the bank`s efforts to study and develop blockchain solutions.

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The Reserve Bank of Australia has recently published an assessment that sheds light on the bank`s efforts to study and develop blockchain solutions.

According to the bank`s report (available at: http://www.rba.gov.au/publications/fsr/2017/apr/pdf/dev-fin-sys-arch.pdf), they have created an internal group investigating the technology.

“The Bank will be interested to see what proves to be possible and what proves to be problematic, as countries consider going down the path of digital currency issuance.”, said RBA’s payments policy department chief Tony Richards.

He added that the bank could possibly consider the launch of a national digital dollar in the future.

Meanwhile, the Australian government has reportedly been said to be FinTech friendly.

“From today, all eligible businesses will be able to test a range of financial or credit services with up to 100 retail clients and unlimited wholesale clients for up to twelve months without the need to apply for an Australian Financial Services Licence or Australian Credit Licence and without seeking approval from ASIC.”, said Scott Morrison, Treasurer of Australia.

Australia has been very liberal towards FinTech as the Australian Securities and Investments Commission (ASIC) needs only be notified before Fintechs commence testing. In contrast, the UK`s Financial Conducts Authority requires approval to join their sandbox.

As the central bank made clear, blockchain technology is an aspect of FinTech that “has been examined closely”.

“The Bank is participating in a working group of the Committee on Payments and Market Infrastructures examining DLT (Distributed Ledger or Blockchain Tech) and its implications.’, commented the bank in its Financial Stability Review.

It remains to be seen what would be the result of their research into the possible implementation of blockchain technology.

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