Philip Lowe, RBA (Reserve Bank of Australia) Chief, gave a declaration considering himself as “extremely skeptical” regarding the effect generated by “Facebook’s newly derived cryptocurrency.”
Libra came into a generation with the aim of being treated as a highly embraced currency, which would have a good effect when placed on paper for few or more. Though, the regulator doesn’t come up with such a declaration in the short time period.
Lowe mentioned that:
“The water is present in deep density under the bridge before the proposal (Facebook proposal) gets into the glam light of something being adopted in usage every minute.”
During the press conference declaration, Lowe posted a comment on Libra that the outcome associated with it still hides under uncertainty. There are things left uncompleted such as the proposal for this digital currency needs to show compliance with the regulatory rules and standard, which is a highly concerned topic discussed by the regulators at the international level.
“The regulatory affairs are still due to being addressed and it is necessary to be sure about the presence of a concrete case for the business.”
With such an announcement for the social media, a number of reactions appeared throughout the week. In all the reactions, the wariness raised on a commonplace similarly from all the developers and regulators.
RBA’s Chief, Lowe also expanded his restraint in using the cryptocurrency in common with the argument stating that “cryptocurrencies won’t do so much leading in Australia due to the population already adopting digital payment system as managed by the banking institutions.”
“We are already availing an existing coherent and efficient payment system on the electronic medium which makes it convenient to transfer bank payments from one account to another in just a few seconds with the help of mobile number,” mentions Lowe.
Catching up with the similar note, RBA also showed up some view regarding the “future of cryptocurrencies” in Australia. Without any surprise, the conclusions raised up in similarity with the opinions declared by its main representative.
The institution gave a clear hint mentioning that the presence of centralized and efficient digital payment modes covers up the whole space, leaving not even a single room for cryptocurrencies to rule with huge adoption. It is obvious that dealing with such money form ultimately demands proper control which many don’t find suitable.
RBA says, “There exist several numbers of projects which are generally invited at the cost of lending a cryptocurrency to enter the phase of centralization. Such an attribute is not found as an attractive option for the “crypto-libertarians” which turns them to stand in more similarity with the prevailing payment methods.”