Much more than just a currency. When you think about what the MNBC that central banks of the world sell us as the future of currencywe foolishly think that these will be simple digital currencies. But it’s much more than that. And it seems thatAustralia has just discovered this, with the publication of a report by the Reserve Bank of Australia (RBA) and the Digital Finance Cooperative Research Center (DFCRC). The concepts of programmable currencyfrom tokenization of assets stablecoins orfinancial inclusion are among the avenues being explored by the Sidney-based central bank. 17,000 km from Paris, we’ve just realized the full potential of this new technology, but we’ve also decided to take our time. Here are some explanations.
Tokenization of financial assets and programmable payments: Australia’s central bank loves its new currency…
Not a week goes by without a central bank announcing new experiments with a new currency. central bank digital currency (MNBC). The United States, China, Russia, Europe, India and, more recently, the Central African Republic – all countries, regardless of their economic power, have clearly understood the benefits of such technology. Today, it’s theAustralia which has just completed its MNBC and has just published a report in which the authorities detail the future fields of application for this currency. And unsurprisingly, the possibilities are much broader than just payments.
In the 44 pages published last week, the RBA and the DFCRC have unveiled their conclusions, which revolve around the following themes four main areas which we’ll detail below. Firstly, the principle of programmable currency which is exposed, i.e. the possibility of including with an intelligent contract various parameters specific to payments which may be duration in time, a geographical area or any other condition deemed relevant by the power in place. Then, of course, the working group goes back to the famous tokenization of financial assets which for a country could be government bonds, debt securities or any other asset under national management, as the Bangui authorities wish to do, for example.
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… but takes its time to meet security and confidentiality requirements
The report goes on to discuss the role that a MNBC in a landscape where stablecoins private currencies. This could help stabilize the edifice by backing these private currencies with an MNBC. Finally, the last aspect of our research concerns the notion of financial inclusion which concerns audiences hitherto excluded from monetary system traditional as people displacedand refugeesexcluded minorities and travellers. But well aware of all the progress that the blockchain can bring to the national economy, the Canberra authorities are not, however, determined to put the cart before the horse.
The document continues with the following sentence:
« Given the many issues still to be resolved, any decision on an MNBC in Australia is likely to take a few years. There is a need for further research due to a range of legal, regulatory, technical and operational issues. »
L’Australia is therefore at the same stage as other countries that have understood all the advantages that they could derive from the use of a MNBC. But now it is time to move on to actual implementation and, above all, to reflect on theinternational harmonization of these various national digital currencies. This is probably where the Bank for Settlements internationalwhich is very fond of these technologies, will have to come into play and set up a regulatory framework which will enable move on to the practical phase of the project.
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