Australian Central Bank bats for private solution to cryptos if…

ambcrypto.com:

According to Phillip Lowe, Governor of the Australian Central Bank, a private solution for cryptocurrencies “is going to be superior.” That is, as long as risks are reduced by regulations.

Lowe expressed these opinions at a recent G20 finance summit in Indonesia. During the same, officials from various countries reportedly spoke about the effects of stablecoins and DeFi on international financial institutions.

Recent stablecoin dangers can be mainly attributed to de-pegging occurrences. The value of the entire Terra Classic ecosystem dropped in May when the Terra USD stablecoin UST, now known as Terra Classic USD, lost its peg. 

Strict rules or even state support, according to Lowe, could help reduce hazards to the general population. Although the government would be in charge of the regulations, Lowe pointed out that the private sector would be best suited to develop the technology.

According to him, private businesses “innovate” the best characteristics for cryptocurrencies “better than the central bank.” He said,

“If these tokens are going to be used widely by the community, they are going to need to be backed by the state or regulated just as we regulate bank deposits.”

So-called central bank digital currencies (CBDCs), which can be either retail tokens used directly by customers or wholesale tokens used by banks in the financial system, are being developed by numerous central banks throughout the world.

This is in part a reaction to the emergence of so-called stablecoins, privately-issued tokens like Tether and USDC, whose value is tied to that of a traditional asset, frequently the U.S. dollar. These are typically used as stores of value and for payment purposes.

In a statement to the U.S. Commerce Department, the