The chairman of the prudential regulator, Wayne Byres, is concerned a central bank digital currency might destabilise the financial system by encouraging some customers to hold digital cash directly with the Reserve Bank instead of putting money in bank deposits.
The Australian Prudential Regulation Authority, through the Council of Financial Regulators, is studying the risks of a central bank digital currency, which would create an electronic version of Australian dollar cash issued by the Reserve Bank.
Loading...
Ayesha de Kretser is a senior reporter with The Australian Financial Review covering the aviation and tourism sectors. She has previously reported on banking, mining and commodity markets. Connect with Ayesha on Twitter. Email Ayesha at ayesha.dekretser@afr.com.au
