Australia, NZ central banks shun “volatile” digital currencies – Reuters

Tony Richards, Head of the Reserve Bank of Australia’s (RBA) payments policy said in the text of a speech given in Sydney, they would not issue official cryptocurrencies anytime soon because of their volatility and vulnerability to hacking, Reuters reports.

Richards noted: “Nine years after its launch and about five years since it entered the public consciousness, bitcoin continues to have structural flaws that make it unsuitable for many uses, many of which stem from its inefficient verification process,”

Meanwhile, the Reserve Bank of New Zealand (RBNZ)  Deputy Governor Geoff Bascand said in the text of a speech at an Auckland conference: “A breakdown in the financial system can cause enormous economic and social harm. We could not issue a digital currency if it might undermine financial stability,”  

“The payments industry is dynamic, which is good. But the Reserve Bank must be a considered prospector in the exploration for digital currency benefits – we have New Zealand’s currency and financial system at stake,” Bascand added.