Dr. Tony Richards, head of payments policy at the Reserve Bank of Australia, said that the stability of the Australian dollar would make widespread Bitcoin adoption in the country unlikely. He also suggested that the local use of the currency is so limited that the central bank does not consider it a major impact on its monetary policy or the stability of their financial system.

Dr. Richards noted that cryptocurrencies have practical applications, but it may not create a substantial impact on the Australian economy, saying:

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

He added:

“Whether those are cryptocurrencies or something like the US dollar is another issue, but we in Australia have a perfectly credible currency called the Australian dollar; we’ve had low and stable inflation for at least 25 years; and the likelihood that we’d have significant adoption of an alternative currency seems to be pretty low.”

Dr. Richards stated that the strength and stability of the economy and a strong Australian dollar would help its traditional financial system remain dominant.

The price of Bitcoin is very volatile and not backed by any physical unit or a government. Therefore, if Richards is to be believed, a country with a robust banking system will not be affected much by the rise in its popularity. He also invested in Bitcoin in 2014, the year in which the prices of the coins fell by nearly three-fourths.

He said that Bitcoin intermediaries pose a lot more risk to the investors as compared to banks and traditional financial institutions. The RBA, per Richards, is not actively looking forward to the development of a state-sponsored e-currency. Neighboring country New Zealand also denied the possibility of state-backed crypto, commenting that it was too early to count the benefits of such a coin.

However, like most other central banks, the RBA wants to initiate discussions on blockchain technology, which is the underlying technology of Bitcoin. It is a kind of distributed ledger that creates immutable public records; thus, avoiding forgery, scams, and accounting problems.

Dr. Richards commented:

“Even if one is quite skeptical of whether bitcoin will have a significant role in the economy in the future, I think it is hard to avoid some admiration for its design.”

Bitcoin Unlikely to Take Off in Australia, An RBA Official Suggests was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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