The head of the central bank of Australia, Phillip Lowe, believes that cryptotechnologies should be developed with the help of private companies.
Lowe shared his opinion at the G20 financial meeting in Indonesia. During the meeting, officials discussed the impact of stablecoins and the decentralized finance sector (DeFi) on global financial systems.
Lowe suggested that strong regulation or even government support could help reduce risks to the public.
Although regulation will be carried out by the state, Lowe noted that the private sector should be engaged in technology development — it will be better. In his opinion, private companies "better than the central bank will be able to develop the "best functions" for cryptocurrencies."
He added that "for the central bank, the creation of a digital token system is likely to involve very significant costs."
His opinion is not shared by the regions that are currently developing or experimenting with CBDC, for example, China, the European Union and the Bahamas.
At the same meeting of the G20 countries, the Director General of the Hong Kong Monetary Authority, Eddie Yue, supported Low's opinion that stablecoins should be more thoroughly studied. He said that reliable stablecoins will reduce risks in DeFi, where they act as the main transactional currency.