The Australian Financial Review: APRA Says Crypto Will Force Changes To The ‘Regulatory Architecture’

A report published last week by Oliver Wyman, which is working with many global banks and regulators on changes to money, suggests Basel’s thinking could play out to result in crypto assets being regulated similarly to other financial assets.

Titled Cryptoassets: tulips or dot-coms?,it points to polarised views about crypto in the market but suggests regulators will take a middle ground which recognises that while most crypto assets do not have claims on cash flows or carry an ownership interest like conventional stocks and bonds, they are no more volatile than many US equities, enjoy greater market liquidity and can earn interest or other compensation.

“Money is changing dramatically, and that transformation will alter the financial system as a whole,” Oliver Wyman’s Mr Elliott said.

“The strong political and bureaucratic desire to maintain the relevance of central bank money at a time when the use of physical cash is dwindling rapidly [is] making CBDCs nearly inevitable in most countries,” he said, referring to central bank digital currencies.

Read the full article on: AFR