Bulletin article discusses digital currencies
An article published today in the Reserve Bank Bulletin outlines different forms of digital currencies.
In recent years there have been continuous advances in financial technology and increased interest in digital currencies. The advent of crypto-currencies, first introduced in 2008, has added a dimension to digital financial services.
In this environment, central banks, which have a role as national issuers of cash around the world, are considering the implications of these new technologies, including the potential for issuing their own digital currencies.
This article by Amber Wadsworth is the first of a series to be released over the next few months. It explores different forms of digital currencies using a money tree classification. Future articles will compare distributed ledger technology to existing financial market infrastructure for payments, and assess the pros and cons of a central bank issuing its own digital currency. These articles do not propose a design for a digital currency or suggest that the Reserve Bank will issue digital currency.
Read the Bulletin article: What is digital currency?
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