New Australian consumer payments regulation likely

2022 ◽  
Keyword(s):  
Central Bank ◽  
Consumer Protection ◽  
Regulatory Policy ◽  
Market Risk ◽  
Tax Revenue ◽  
Content Type ◽  
Payment Methods ◽  
Digital Currency ◽  
Digital Wallets

Significance Market sectors under scrutiny include buy-now-pay-later (BNPL) platforms, cryptocurrency exchanges and digital wallets. All have seen a recent leap in popularity, driven in part by COVID-related concerns but mostly by the mainstream interest in alternative payment methods, leaving regulators concerned. Impacts The Treasurer is likely to gain extended powers to plug gaps in regulatory policy and address convergence issues. Liquidity concerns over cryptocurrency trading could be overcome through a central bank digital currency. Concerns over lost tax revenue and consumer protection, as well as the need to contain market risk, are driving reform efforts.

scholarly journals Legalization of Central Bank Digital Currency under Blockchain Industry

CONVERTER ◽  
2021 ◽  
pp. 450-458
Author(s):  
Yuting Hsu, Chengyong Liu
Keyword(s):  
Central Bank ◽  
Money Laundering ◽  
Consumer Protection ◽  
Legal System ◽  
Financial Stability ◽  
Central Banks ◽  
User Privacy ◽  
General Outline ◽  
The Public ◽  
Digital Currency

In recent years, private digital currency based on blockchainindustry has caused many doubts, such as privacy infringement, money laundering tools, consumer protection and financial stability. However, as digital currency has gradually become the important issue, the central banks of various countries have already started to study the central bank digital currency (CBDC). In this paper, firstly, the concept of private digital currency and its derivative issues are explained. Secondly, based on the two chains scheme of the blockchain, a CBDC system is established to facilitate supervision, which stores and accesses transaction information and verification information separately to balance the user privacy security and the convenience of supervision. Meanwhile, the consortium blockchain is settled to the public chain to protect the reliability of the data. Moreover, although some countries have started to develop CBDC, laws and regulations which regulate various aspects of it are still deficient. Therefore, in this paper, in addition to proposing a general outline of the legal system regulating the CBDC, it also illustrates separately the monetary rights and obligations of the central bank, merchant banks and the public, which will be helpful for the future legal construction.

scholarly journals Central bank digital currency research around the world: a review of literature

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peterson K. Ozili
Keyword(s):  
Central Bank ◽  
Financial Stability ◽  
Future Research ◽  
Policy Makers ◽  
Content Type ◽  
Digital Currency ◽  
Potential Benefits ◽  
Digital Payments ◽  
The Cost ◽  
Country Specific

Purpose The purpose of this paper is to gain some insight into central bank digital currency research by reviewing the recent advances in central bank digital currency (CBDC) research in a way that would help researchers, policy makers and practitioners to take a closer look at CBDC. Design/methodology/approach The paper uses a systematic literature review methodology. Findings The review shows a general consensus that a CBDC is a liability of the central bank and it has cash-like attributes. The review also presents the motivation and benefits of issuing a CBDC such as the need to increase financial inclusion, the need to improve the conduct of monetary policy and to foster efficient digital payments. The review also shows that many central banks are researching the potential to issue CBDCs due to its many benefits. However, a number of studies have called for caution against over-optimism about the potential benefits of CBDC due to the limiting nature of CBDC design and its inability to meet multiple competing goals. Suggested areas for future research are identified such as the need to find the optimal CBDC design that meets all competing objectives, the need for empirical evidence on the effect of CBDC on the cost of credit and financial stability, and the need to find a balance between limiting the CBDC holdings of users and allowing users to hold as much CBDC as they want, and there is a need to undertake country-specific and regional case studies of CBDC design. Originality/value This review paper offers new areas for further research in central bank digital currencies.

Central bank digital currency launch is getting closer

2020 ◽  
Keyword(s):  
Central Bank ◽  
Multiple Impacts ◽  
Content Type ◽  
Digital Currency ◽  
Policy Tool ◽  
Technology Platforms ◽  
Regulatory Scrutiny ◽  
The Masses ◽  
Similar Stage ◽  
The Eu

Significance Fed Chair Jerome Powell is lukewarm on digital currencies but the multiple impacts of COVID-19, and the progress of China and other states on CBDCs, have reignited calls for a digital dollar. Impacts A CBDC will give governments a new policy tool, allowing the distribution and monitoring of aid nationally and internationally. Governments will have to collaborate closely with private-sector technology platforms to bring a CBDC to the masses. A digital yuan or dollar will foster the digitalisation of assets and pave the way for more regulatory scrutiny of cryptocurrencies. A digital euro is at a similar stage to a digital dollar; the first CBDC will see the EU accelerating its plan to digitalise the euro.

Household acceptance of central bank digital currency: the role of institutional trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Klaus Solberg Söilen ◽  
Lamiae Benhayoun
Keyword(s):  
Central Bank ◽  
Structural Equation ◽  
High Performance ◽  
Equation Modeling ◽  
Institutional Trust ◽  
Centralized Control ◽  
Content Type ◽  
Digital Currency ◽  
Use Of Technology ◽  
Facilitating Conditions

PurposeThe authors investigate household acceptance of central bank digital currencies (CBDCs) by drawing on the unified theory of acceptance and use of technology and institutional trust theory.Design/methodology/approachThe authors build a research model including six hypotheses and quantitatively analyze it using partial least squares structural equation modeling (PLS-SEM) and importance–performance map analysis (IPMA) based on 282 answers to a survey questionnaire.FindingsThe continuous adoption of CBDCs by households is highly probable and is fostered by its expected high performance, the social recommendations and the existence of facilitating conditions. Nevertheless, institutions' efforts to propose a flexible and understandable currency can benefit its adoption only if these institutions also strive to build households' trust in the currency's system.Originality/valueThe authors provide a full review of the emerging literature on CBDCs and suggest that digital currency offerings can be divided into centralized, semi-centralized and de-centralized control in a meaningful taxonomy. The authors also complement extant studies on CBDCs that mostly apprehend its operational challenges by focusing on the customer side and provide implications to the launching of CBDCs by uncovering the customer-specific determinants of their adoption.

scholarly journals A global perspective on central bank digital currency

2021 ◽  
pp. 1-16
Author(s):  
David Kuo Chuen Lee ◽  
Li Yan ◽  
Yu Wang
Keyword(s):  
Central Bank ◽  
Global Perspective ◽  
Digital Currency
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