Australian central banker says privately issued, regulated digital currencies may have benefits: Reuters 

Quick Take

  • Australia’s central bank chief said he tended “to think that the private solution is going to be better — if we can get the regulatory arrangements right.”

Consumer-focused digital tokens issued by private companies may be better than central bank-issued tokens if they can be properly regulated, Australia’s central bank chief said today in a panel discussion, Reuters reported. 

Phillip Lowe, speaking at a meeting of G20 finance officials in Indonesia, 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.” 

He added: "I tend to think that the private solution is going to be better — if we can get the regulatory arrangements right — because the private sector is better than the central bank at innovating and designing features for these tokens."