Ever since cryptocurrencies started getting international traction, more and more countries began to consider its technological and innovational potential. Some even started to wonder what benefits they could bring to more regulated systems. The talk of creating a central bank cryptocurrency has been actively going on in many countries.
The idea itself might seem contradictory, seeing that the main appeal of cryptocurrencies comes down to the fact that it is decentralized, anonymous, and untraceable. But banks and governments seem set on making cryptocurrency work for their existing services and policies.
Let’s look at China, which has been working on its central bank cryptocurrency for almost a year now. It will be launching the project soon, with the help of telecommunication giant Huawei and firm backing from the government. While China is dedicated to making cryptocurrency as mainstream as possible, Australia has a different approach. It is unlikely that cryptocurrencies will be taking over from regulated systems, or banks as we know them. Not in Oz.
Lack of demand for CBDC
While conversations around this topic have been quite popular in Australia, the final decision rests with the country’s Reserve Bank. They already said that they see no need for a central bank cryptocurrency now since no one seems to be asking for it. But it actually makes a lot of sense for a country where regular cryptocurrencies are already quite popular. The main selling point of a central bank crypto is that it is potentially more reliable and trustworthy.
Many people who use Bitcoin, or other popular cryptocurrencies, rely on technology because they do not want to deal with regulations or transactional costs. In fact, anything that most people usually find annoying about traditional banks or currencies!
In general terms, cryptocurrencies are huge in Australia, especially in the entertainment industries and gambling. The country has even updated its regulations to better accommodate cryptocurrencies and to promote their safe adoption. Over the last year or so, we have seen many new facilities pop up, accepting different crypto payments.
Some operate exclusively on Bitcoin or Ethereum. We have seen the rise of Bitcoin casinos, or even Bitcoin games, offered at Australian real money online casinos. This is not as common in other parts of the world, but Australia seems to love cryptocurrency. And that is why the adoption rate has been so impressive across the nation. Read More...