The Reserve Bank of Australia, which is the Central Bank of Australia, has declared that even if Facebook’s Libra cryptocurrency is heavily regulated, it will still not be allowed in Australia.
These comments from the Reserve Bank of Australia are in-line with the thinking of most other countries in the world. Essentially, Libra is considered to be an attempt by corporations to launch their own independent Central Bank and fiat currency, and this is perceived as a threat by the governments of the world, since it could theoretically take away from the power of governments.
Indeed, Libra has been facing such heavy regulatory scrutiny that there are no signs that it will launch anytime soon, if at all. The G7 has cautioned that private stablecoins should not be allowed until all risks and regulatory requirements are thoroughly assessed, which is a process that could continue indefinitely.
Based on the Reserve Bank of Australia’s comments, it seems that any private stablecoin operating in the country, not just Libra, could be prohibited.
That being said, the Reserve Bank of Australia is considering launching its own central bank digital currency (CBDC), which would basically be the stablecoin version of the Australian Dollar (AUD). The Australian Central Bank believes that an AUD CBDC could help boost productivity in the broader economy and help transform Australia into a digital economy.