The Reserve Bank of Australia (RBA) Chief, Philip Lowe, declared himself to be profoundly skeptical on the impact of Facebook’s new cryptocurrency.
The goal of Libra as a massively adopted digital currency might look good on paper for some, but the regulator doesn’t see it as much of a possibility in the short run.
“There’s a lot of water under the bridge before Facebook’s proposal becomes something we’re using all the time,” Lowe said.
In declarations given during a press conference, Lowe commented that Libra’s outcome is still uncertain. The digital currency proposal is yet to comply with regulatory standards, which is the main concern among regulators at an international scale.
“There are a lot of regulatory issues that need to be addressed and they’ve got to make sure there’s a solid business case,” Lowe said.
The social media platform announcement has already sparked a chain of reactions this week, with distrust being commonplace from regulators and developers alike.
The RBA’s Chief extended his reticence to the use of cryptocurrencies in general, arguing that cryptocurrencies “would not take off” in Australia since the population is already used to digital payments controlled by banks.
“We already have a very, very efficient electronic payments system that allows anyone of us to make bank payments to another person in five seconds just knowing their mobile phone number,” Lowe said.
Libra’s Overview
On the same note, the RBA also published its views on the future of cryptocurrencies in Australia. Unsurprisingly, its conclusions are not very far from its main representative opinions.
According to the institution, centralized digital payment methods leave no room for massive adoption of cryptocurrencies, stating that the use of this form of money requires a control that many are against.
“Many projects generally come at the cost of making a cryptocurrency more centralized, a feature that may not be attractive to crypto-libertarians and in any case makes them more similar to established payment systems,” the RBA said.
Australian flag image via Shutterstock