RBA Governor Philip Lowe has said that regulated and consumer-facing private tokens, with proper oversight by their issuers, are better than national digital currencies (CBDCs), Reuters has reported.
The official has explained during the financial G20 conference, that, unlike the state, the private sector is better at innovating and developing the functionality of tokens. The central bank will require “significant costs to create a CBDC.”
The head of the Monetary Authority of Hong Kong, Eddie Yue has agreed with him. He has urged to carefully study the work of stablecoins to reduce the risks posed by DeFi protocols.
He has explained:
“Despite the Terra-Luna incident, cryptocurrencies and decentralized finance will not disappear. The technologies and innovations behind them will shape the face of the future system.”