Australian Central Bank Chief Believes Regulated Private Tokens Could Be Better Than CBDCs: Report

Governor Philip Lowe spoke at a panel discussion at the G20 finance officials' meeting in Indonesia on Sunday.

AccessTimeIconJul 18, 2022 at 10:46 a.m. UTC
Updated May 11, 2023 at 4:49 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Australian central bank governor, Philip Lowe, said that privately issued consumer-focused digital tokens could be better than central bank-issued tokens assuming the companies can be regulated appropriately, according to a Reuters report.

  • Philip Lowe was speaking at a panel discussion at the G20 finance officials' meeting in Indonesia on Sunday. "I tend to think that the private solution is going to be better - if we can get the regulatory arrangements right," Lowe said.
  • Lowe explained that "the private sector is better than the central bank" because it is better "at innovating and designing features for these tokens." He also said there are also "likely to be very significant costs for the central bank setting up a digital token."
  • In order for the regulatory framework to be effective, Australia has set a tentative deadline of 2025 to implement crypto regulation, according to its financial regulator.
  • Central banks across the world are developing central bank digital currencies (CBDCs), grappling with the idea of either retail for consumers directly or wholesale for banks or both.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Amitoj Singh

Amitoj Singh is a CoinDesk reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.