Australian Central Bank: "cryptocurrencies are unlikely to become widespread in the near future"

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The Central Bank of Australia issued a document in which it reported that the level of cryptocurrency use in the country will be low as long as the traditional financial system performs its functions.

"There is a very small probability of using cryptocurrency for retail payments in Australia in the foreseeable future," said analysts of the Reserve Bank of Australia (RBA).

Interestingly, according to researchers, cryptocurrencies can have only two of the three basic functions, such as decentralization, scalability and security. At the same time, this class of assets has certain drawbacks that make it less attractive to investors.

"In fact, this happens gradually - an increase in scalability does not make a cryptocurrency fully centralized, but makes it more centralized or less secure," the researchers emphasized.

Another obstacle to the use of cryptocurrency is their volatility, however, the authors of the document believe that the stirabcoin Libra, which will be tied to a whole basket of traditional assets, can solve this problem.

Researchers noted that stable cryptocurrencies launched in Australia "were used very little." So, the first coin tied to the Australian dollar - AUDRamp - completely lost its value, although only 137 tokens were issued.

In conclusion, the authors of the document noted that at the moment cryptocurrencies have not reached the necessary level of development to compete with the traditional financial system.

Note that in late April, the Australian Tax Service announced its intention to oversee the cryptocurrency transactions of citizens to identify unscrupulous taxpayers.
 
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