Australia’s central bank is sceptical on a digital currency, but signals that could change
Countries are creating their own digital currencies to replace their traditional ones, but some are still unsure ...
Key takeaways
- In a speech on the payments system on Thursday, Reserve Bank of Australia (RBA) Governor Philip Lowe also said regulators were reviewing the treatment of crypto-assets, and cautioned investors to be wary of the risks when buying.
- Lowe said the growth of digital wallets could allow the exchange of tokens or digital forms of money which could be backed by the RBA.
Cite or link to this article
Griffin, M. (2022) 'Australia’s central bank is sceptical on a digital currency, but signals that could change', 311 Institute, 4 April. Available at: https://www.311institute.com/australias-central-bank-is-sceptical-on-a-digital-currency-but-signals-that-could-change/ (Accessed: 1 October 2026).
As Central Bank Digital Currencies (CBDC), digital equivalents of a sovereign country’s cash, slowly gather steam, with China launching one, and Europe, the UK, the US, and others all taking steps to create their own and testing them, the head of Australia's central bank still sees no strong case for a retail digital currency in the country, though he conceded one could emerge as technology and public preferences are changing rapidly.
In a speech on the payments system on Thursday, Reserve Bank of Australia (RBA) Governor Philip Lowe also said regulators were reviewing the treatment of crypto-assets, and cautioned investors to be wary of the risks when buying.
This comes as the government is launching the biggest overhaul of Australia's A$650 billion-a-day ($466 billion) payments industry in a quarter of a century.
Lowe said the growth of digital wallets could allow the exchange of tokens or digital forms of money which could be backed by the RBA.
"This would be a form of retail CBDC, or an eAUD," said Lowe. "To date, though, we have not seen a strong public policy case to move in this direction, especially given Australia's efficient, fast and convenient electronic payments system."
Lowe said a case could emerge as technology evolves and there would be advantages in any digital payment tokens being backed by the central bank.
"A lesson from history is that privately issued and backed money all too often ends in financial instability and losses for consumers," he added.
If private digital tokens, or stablecoins, were to develop they would need to be backed by high-quality assets and meet high standards for safety and security, he said.
He was also sceptical about the need for a cryptocurrency not linked directly to the Australian dollar or backed by a particular entity or assets, partly because of their volatility.
What this means for your organisation
Efficient systems reduce the need.
Fast electronic payments weaken the case for a state digital currency. Countries with weaker systems may move first. Payment firms should track which markets are likely to adopt central bank money.
The door is open, not shut.
Lowe said a case could emerge as technology and public preferences change. Policy may shift quickly once wallets spread. Banks should keep plans ready rather than assume no change.
Private money faces scrutiny.
The governor warned that privately issued money often ends in instability. Regulators are reviewing crypto-assets. Firms issuing or holding digital tokens should expect tighter rules.
Three questions for your next leadership meeting
- Which of our markets are most likely to launch a digital currency?
- Are we ready if central bank tokens arrive suddenly?
- How would tighter crypto rules affect our holdings or products?
The trends and technologies behind this story
From the 311 Starburst, the 311 Strategic Intelligence Unit’s map of the technologies and trends shaping the next 50 years.
Analysis by the 311 Strategic Intelligence Unit, from Matthew Griffin’s article and 311 data. First published on Fanatical Futurist.
FAQ
Why does this matter?
Countries are creating their own digital currencies to replace their traditional ones, but some are still unsure ...
About the author
Matthew Griffin Founder, President and Futurist, 311 Institute
Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath."
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Matthew Griffin is a multi-award winning Futurist and expert in Disruption and Innovation, Geopolitics, Leadership, and Technology, who NASA have described as a "walking encyclopaedia of the future" and a "futurist Polymath." 17-time best selling author of the "Codex of the Future" series, Matthew is the Founder, President and Futurist of the 311 Institute, a global Futures and Deep Futures advisory firm working with royal households, world leaders, G7, G20, and G77 governments, NGOs, and multi-national mid and mega cap firms to help them explore, shape, and lead the next 50 years of business and society.
An award-winning YouTube creator with over a million followers, with an unrivalled global reach and impact, Matthew is a highly sought-after international keynote speaker, lecturer, and mentor who collaborates with global leaders through the United Nations Alliance of Civilizations (UNAOC) and United Nations General Assembly (UNGA) to shape pivotal initiatives such as the UN’s AI for Humanity programme, the United Nations Conference of the Parties (UN COP), and the World Economic Forum in Davos.
As the former Global Head of Cloud, National Security, and Enterprise Sales for companies including Atos, Dell-EMC, and IBM, Matthew has a proven track record of building multi-billion dollar business units and turning failing divisions into market leaders. His ability to identify, analyse, and communicate the implications of hundreds of emerging technologies and trends is unparalleled, and his insights are trusted by many of the world’s most respected organisations, including ABB, Accenture, Adidas, AON, ARM, BCG, Centrica, Citi, Coca-Cola, Dentons, Deloitte, Dow Jones, EY, Google, KPMG, Lego, Legal & General, LinkedIn, Microsoft, PepsiCo, Qualcomm, RWE, Samsung, Siemens AG and Siemens Energy, T-Mobile, UBS, VISA, Walmart, Workday, Worldpay and many others.
Regularly featured in the global media including the AP, BBC, Bloomberg, CNBC, Discovery, Forbes, Khaleej Times, Telegraph, TIME, ViacomCBS, WIRED, and the WSJ, Matthews mission is to help organisations create a fair and sustainable future whose benefits are shared by everyone irrespective of their ability, background, or circumstances.
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Sources and further reading
- Reserve Bank of Australia rba.gov.au
Source: first published by the 311 Institute on 4 April 2022. Cite as: Griffin, M. (2022). Australia’s central bank is sceptical on a digital currency, but signals that could change. 311 Institute. https://www.311institute.com/australias-central-bank-is-sceptical-on-a-digital-currency-but-signals-that-could-change/
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