RBA's Lowe: Australian's to hold bulk of money in bank deposits
|RBA's Lowe is speaking at an event entitled, "An electronic Aussie" with an address to the 2017 Australian Payment Summit. While there is nothing on monetary policy, he says that there is no case yet for issuing Australian dollars on blockchain for use with limited private systems, although adding that any form of electronic Australian dollar would best be issued by the RBA.
Some key notes:
Plausible that households, businesses will continue to hold bulk of money in commercial bank deposits.
History of private currency issuance is one of periodic panic and instability.
Says current fascination with cryptocurrencies a "speculative mania"
Hard to see cryptocurrencies being commonly used for everyday payments.
Any form of electronic Australian dollar would best be issued by the RBA.
Case for adding electronic form of Australian banknotes to payments mix has not been established.
Says few central bank peers see electronic banknotes on the horizon.
Says electronic banknotes could threaten financial stability, lead to bank runs.
Do not see case for RBA offering every Australian a bank account for making payments.
Says no case yet for issuing Australian dollars on blockchain for use with limited private systems.
About RBA Lowe
Philip Lowe replaced Glenn Stevens as governor of Australia’s central bank. Lowe was the Deputy Governor of the Reserve Bank of Australia, a position he held since February 2012.
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