Australia’s APRA Considers Overlooking Facebook’s Calibra

Australia’s APRA- the Prudential Regulation Authority reportedly considers submitting a framework to oversee the digital wallets that hold huge amounts of value and if approved, this could include Facebook’s controversial stablecoin, Libra and Calibra so let’s find out more in today’s Libra news.

Right after the announcement, Facebook’s Libra attracted the attention of the watchdogs again and the social media giant is trying to boost its digital wallet called Calibra which is able to store and move the stabelcoin along. While most of the regulators around the world are going against Facebook’s project, Australia’s APRA could consider Calibra after they published a submission which shows its intent to regulate digital wallets with a lot of amounts of value.

APRA believes that technological developments in the financial sector and introducing stablecoins could bring good to the country.
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It proposes a unified framework where the current and future economic systems can work together:

 “The new framework is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stable coin eco-systems that have been subject to significant attention in recent months. Under this proposal, APRA’s role in the framework would be to oversee wallets that are widely used as a means of payment and store of significant value for a reasonable amount of time.”

Facebook’s Libra could indeed be a stabelcoin backed by real assets but it is not the only digital payment service that is created by large technological companies. Apple Pay, for example, is another type of digital wallet that has now more mass acceptance while APRA decides whether to support this as well. The report informs that because of apple’s product that is already in works with the existing infrastructure run by banks, it could attract a lot lower level of regulatory scrutiny.

In addition, the Reserve Bank of Australia doesn’t really believe that the country will need its own central bank digital currency. As per the recent reports, the institution believes that the Australian people already have well-established and regulated digital payment services so they don’t really need a stabelcoin. With Libra’s continuous regulatory problems before the launch, the question remains whether in any other country they will start adopting Libra as a legal form of payment.