The Australian central bank considers regulation of blockchain protocols ineffective

   212

Two of the officials of the Australian central bank said last week.

Speaking to the Australian House of Representatives Standing Committee on Tax and Revenue, Tony Richards and David Emery, both from the Reserve Bank of Australia's payments policy department, discussed a number of issues, including the institution's views on cryptocurrencies and blockchain.

It is noteworthy that the pair pointed out that the central bank probably would not support any rule-making operations around the main protocols composing the blockchain networks.

Both claimed:
"The distributed and cross-border nature of digital currencies, such as bitcoin, means that regulation of the main protocols of these systems is unlikely to be effective."

Indeed, last week the officials said that the central bank does not see much need for regulation of cryptocurrencies in the short term.

The appearance also highlights how the Australian central bank sees the technology may be strengthened - in particular, they emphasize that industries with a large number of intermediaries could capture the most benefits.