Reserve Bank hints at its own digital currency

author-avatar By on March 15, 2021
Reserve Bank hints at its own digital currency

In a conference speech today, Reserve Bank Governor Dr Philip Lowe said the central bank is considering its own digital currency.

In his remarks to the Melbourne Business Analytics Conference, Dr Lowe was more open than in the past about the potential for a central bank digital currency.

"The RBA is conducting research on the technologies and policy implications of a potential wholesale central bank digital currency," he said.

"This could use distributed ledger technology to support the settlement of transactions in the interbank payment system.

"Some of this work is taking place in the RBA's in-house Innovation Lab, where we are collaborating with external parties on a proof-of-concept."

This is in contrast to an RBA  December 2019 submission to a Senate Select Committee in which it said, "The Bank is not currently considering a CBDC [central bank digital currency] for retail use, but notes the availability of a wholesale settlement token based on distributed ledger technology could allow payment and settlement processes to become more integrated with other business processes".

This morning, Dr Lowe was also supportive of the consumer data right and open banking, despite slow uptake due to significant administration costs and red tape.

"In many ways data is the new oil of the 21st century. Investing in data and our digital capability are critical to our future prosperity," he said.

"This access has started with open banking, which will make it easier for Australians to switch between financial institutions and access financial products that better suit their needs."

Richard Atkinson, a general manager at credit reporting agency illion, said in late January there had been "no consumer benefit" in open banking so far. 

"In illion’s experience, the current model imposes a significant cost on an organisation to achieve accreditation," he said.

"What kind of organisations could create innovative solutions for consumers? Financial planners, accountants, brokers - none of these are able to currently do it in a cost-effective manner."

As of late January there had been just six data recipients granted accreditation - Ezidox, Frollo, Intuit, Regional Australia Bank, and two illion brands.


Photo by 'Newtown Grafitti' on Flickr

Latest Articles

author-avatar
Harrison joined Savings in 2020. He is an experienced journalist, with previous stints at News Corp and financial comparison site Canstar. With a keen interest in personal finance, Harrison is passionate about helping consumers make more informed financial decisions.

Collections:

Get free insights & tips monthly

By subscribing you agree to the Savings Privacy Policy

Loading data please wait...

{{returnData.productName}}

Overview

Current Rate

{{returnData.currentRate | percentage:2}}

Comparison Rate*

{{returnData.comparisonRate | percentage:2}}

Rate Type

{{returnData.rateType}}

Advertised Rate

{{returnData.advertisedInterestRate}}

Comparison Rate*

{{returnData.comparisonRate}}

Monthly Repayment

{{returnData.monthlyRepayment}}

Interest Type

{{returnData.interestType}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Bonus Interest Rate

{{returnData.bonusInterestRate | percentage:2}}

Total Interest Rate

{{returnData.totalInterestRate | percentage:2}}

Introductory Rate

{{returnData.introductoryRate | percentage:2}}

Introductory Term

{{returnData.introductoryTerm}}

Base Interest Rate

{{returnData.baseInterestRate | percentage:2}}

Term

{{returnData.term}}

Advertised Interest Rate

{{returnData.advertisedInterestRate | percentage:2}}

Interest Frequency

{{returnData.interestFrequency}}


Fees and Features

Ongoing Annualised Fee

{{returnData.annualFee}}

Upfront Fee

{{returnData.upfrontFee}}

Offset Account

Redraw

Principal & Interest

Interest Only

N/A{{returnData.interestOnly}}

Max loan to value ratio (LVR)

{{returnData.maxLVR | percentage:0}}

Lump sum repayments

N/A

Additional repayments

Maximum Loan Term

{{returnData.maximumLoanTerm}}

Upfront Fee

${{returnData.upfrontFee}}

Ongoing Monthly Fee

{{returnData.ongoingFees}}

Early Repayment Fee Applies

N/A

Vehicle Types

{{returnData.vehicleType}}

Maximum Vehicle Age

{{returnData.maximumVehicleAge}}

Pre Approval Available

N/A

Online Application

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Account Keeping Fee

{{returnData.accountKeepingFee}}

Minimum Monthly Deposit

{{returnData.minMonthlyDeposit}}

Linked Account Required

N/A

Interest Calculated

{{returnData.interestCalculated}}

Interest Paid

{{returnData.interestPaid}}

Online Application

N/A

ATM

N/A

EFTPOS

N/A

Minimum Deposit

{{returnData.minDeposit | currency : '$' : 0}}

Upfront Fees

{{returnData.upfrontFee | currency : '$' : 0}}

Annual Fees

{{returnData.annualFee | currency : '$' : 0}}

Notice Period to Withdraw

{{returnData.noticePeriodToWithdraw}}

Online Application

N/A

Automatic Rollover

N/A

Maturity Alert

N/A