The leading six regulators of Australia are analyzing the effect of exclusively-owned stablecoins in the market. Stablecoins are a type of cryptocurrency assets that have their value connected to any traditional asset like fiat currency or gold. Such linkage reduces the chances of volatile trends of rise and fall of their prices, hence the name. The regulators are now calculating whether the mass adoption of these coins will be beneficial in the long run and the systemic risks involved.
According to the Council of Financial Regulators, they met last Friday to discuss the priorities that need to be set for the ad-hoc panel on stablecoins, which had been set in April. The Council also informed that this working panel would continue its responsibilities of analyzing all the necessary arrangements and the regulations to be implemented to use stablecoins. This is essential to ensure that the general public of Australia can adopt stablecoins on a larger scale with minimal risks and maximum benefits. Among the Council members, there are representatives of the Treasury, the Australian Securities and Investments Commission, the Australian Prudential Regulation Authority, and the Reserve Bank.
The council had first mentioned such privately owned exchanges and the digital currencies and the newly emerging trend of “decentralized finance” in their quarterly statement of the year in March. That month, the council had discussed how they could develop the central bank by implementing cryptocurrencies, stable coins, assets related to crypto, and DeFi.
According to reports received on Thursday, the Council said they had roped in the central anti-money laundering and anti-fraud institution of Australia-AUSTRAC, the Australian Taxation Office, and the Australian Competition and Consumer Commission into the ad-hoc group of regulators.