Australian Senator Andrew Bragg is looking to make the use of digital yuan for cross-border transactions more widespread in the country, according to a recent article from Crypto News Flash. Steve Murphy, Director of Commercial and Enterprise Payments at Mercator Advisory Group, examines this recent proposal and whether Chinese banks in Australia should be able to use digital yuan for transactions.
In a recent draft bill, Senator Bragg has also proposed a licensing framework to help regulate crypto exchanges. Most readers who follow these pages will know that the Chinese government has been pushing their central bank digital currency (CBDC) and they’ve been doing ongoing field testing, although these have been [primarily] retail scenarios. We have been providing commentary on the topic and recently added some member research around cryptos in B2B use cases as well.
While the technical usage of a digital yuan is something that can of course be rolled out, the real question is the motivation behind the proposal. The article mentions that Senator Bragg also criticized the current Labor government for its slow recognition of crypto’s importance in the future world of economic transactions. Interested readers can get some more background details on the controversy by looking at these Payments Journal articles.