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Australian and New Zealand Banks Join Together in Dismissing Crypto

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It looks like Australia and New Zealand are singing from the same hymn sheet when it comes to crypto. Comments to the media from senior figures at both the Reserve Banks of Australia (RBA) and New Zealand (RBNZ) are pretty well aligned in terms of their opinions on Bitcoin and crypto in general – and they’re not particularly positive.

RBA Dismissive

The Head of the RBA payments policy, Tony Richards, told Australian Business Economists this week that Bitcoin is a risky prospect, but isn’t a widely-used form of transaction in Australia, and so doesn’t warrant the RBA’s attention at the moment.

nd other cryptocurrencies are yet to establish themselves as reliable stores of value. This is most obvious in a comparison of the volatility of bitcoin as opposed to national currencies like the Australian dollar… The use of cryptocurrencies in Australia is just so trivial that it doesn’t have an effect and I think we can assume that will be the case for a long time.

He also dismissed the idea of an Australian Dollar-backed token, although he did admit that the RBA are investigating the possibility of a central bank digital currency.

RBNZ Cautious

Meanwhile, RBNZ Deputy Governor Geoff Bascand said that banks are taking cautious approaches to crypto, as there is concern over how quickly and easily large amounts of crypto can be transferred remotely, which could cause bank runs if the institutions became too heavily reliant on Bitcoin et al. as majority stores of value. He said:

The payments industry is dynamic, which is good. But the Reserve Bank must be a considered prospector in the exploration for digital currency benefits – we have New Zealand’s currency and financial system at stake.

Image Credit: Deposit Photos

Can you see banks getting involved with crypto in the long run, or are the risks too great? Let us know your thoughts.

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