According to a new report from the Reserve Bank of Australia (RBA), stablecoins could have a significant impact on the country's economy and financial system.
According to the RBA, there has been fairly limited use of stablecoins in the country so far, but the coins could take a more significant place in the financial system in the future.
The RBA also recognises that strong regulatory steps need to be taken to achieve this:
"We support the creation of a regulatory apparatus for stablecoins that promotes innovation while providing appropriate safeguards and security for investors and users."
The Reserve Bank of Australia has not yet made a final decision on the introduction of the digital Australian dollar, but is "actively exploring" the central bank's digital currency (CBDC). The RBA believes that countries that have already issued CBDCs are likely to have done so to improve the efficiency of their domestic payment mechanisms.
The RBA launched a trial program in the spring with the Digital Finance Corporate Research Centre (DFCRC) to assess the feasibility of the state-owned stablecoin. They tested digital Australian dollar transactions such as standalone payments, corporate settlements, auctions and highly liquid securities transactions.