With the ongoing changes in the crypto world, more and more demand for a stable and operatable regulatory body to manage the advancements in this field of crypto assets. The prime reason for this is the growing adoption rate, as traders and clients need a shield to safeguard their funds from the looming economic bear. In reference to this, the Australian Central Bank director has observed that it can be a much more reliable strategy to secure the crypto world by allowing the private platforms to lend virtual property but should be regulated by the financial authorities.
Although, Philip Lowe, Governor, Reserve Bank of Australia, favours the private sector in the area of crypto dealings. On July 15, Philip Lowe gave a statement in a panel debate at the 3rd FCMBG G20 event which took place in Bali, Indonesia. As per the comments made by Lowe, it is quite evident that the private sector has innovated better and has a superior deployment of novel technology within the years when compared with the traditional banks. He claims that digital assets would be far more prone to development if crypto lending is bestowed to private agencies to deal with.
Additionally, Lowe believes that the regulatory structure should be suitable for this functioning to prove to be fruitful. “I tend to think that the private solution is going to be better – if we can get the regulatory arrangements right,” he said, highlighting that an additional benefit that can be avail for this setup would be by avoiding the expense which will be needed to put up “a digital token system.”
Apart from this, he indicated that although issuance should be dealt with by private agencies, there is no harm for the traders to have assured reliability for utilizing cryptocurrencies by having the regulatory bodies associated with the bank to which deposits are connected.