The Australian government announced an ambitious approach to the entire government to regulate and integrate digital assets into the broader economy, inspired by the work done in the European Union (EU) and Singapore.
In a white paper published by the Australian Treasury, the country’s government says that it will adopt tokenization, real world assets (RWAS) and digital currencies of the Central Bank (CBDC) as part of a broader impulse to modernize its financial system.
While discarding a retail CBDC for now, the Government sees a version of CBDC wholesaler and tokenized settlement infrastructure as a key to unlock market efficiency and broader access to assets.
The Government says that the Australian Treasury, the Australian Securities and Investment Commission, as well as the Australian Reserve Bank, plan to launch pilot trials that use tokenized money, including Stablecoins, to solve transactions in the wholesale tokenized markets.
“Markets for tokenized assets can increase automation, reduce the risk of liquidation, reduce dependence on multiple financial intermediaries, simplify commercial processes, reduce transaction costs and provide broader access to traditionally ilíchid assets,” reads the report.
The White Paper also presents a license structure for encryption exchanges, which will be known in Australia as digital asset platforms (DAP).
DAP operators must comply with financial services obligations, such as capital adaptation and dissemination requirements, while using third -party custodians to store customer assets.
The Government also plans to address the concerns of the industry to eliminate its DAP license regime, he said in the White Paper, to allow bank partners to participate better in risk management.
This anti-ebanking effort in Australia follows continuous audiences in the United States on the subject, where the Senator Tim Scott’s signatures seeks to prevent regulators from using “reputational risk” to block cryptographic companies to access bank rails.
