In the near future, No Virtual Currency Will Replace The Dollar!

The Australian Reserve Bank (RBA) has published an official document on virtual currencies. It firmly states, "there is no substitute for Australian dollars with cryptocurrency in the near future.

Looking back at the history of virtual currency over the past decade, he said that cryptocurrency cannot replace Australian dollars in the near future.

As an economic definition of money, money generally has three characteristics.

- Payment method

- Value display scale

- Preserve value

Considering whether bitcoin or other virtual currencies will fall under these definitions, the conclusion is "not applicable." The Australian Reserve Bank (RBA) also mentioned why the above items are not applicable in the document.

Australia's Reserve Bank (RBA) pointed out that because of its close relationship between price stability and the spread of payments instruments, the use of bitcoin as a payment method is also based on the problem of scale or uncertainty of 'payment completeness' (finality). Also, bitcoin has many challenges to distribute as a method of payment.

This document from the Reserve Bank of Australia (RBA) ends with the following statement:

As long as the Australian dollar stabilizes and continues to provide the value-retention function of low inflation, and the payment service industry strives to improve efficiency, functionality and Australia's payment system, it is hard to think about the widespread availability of cryptocurrency in Australia today.

As such, RBA defines Bitcoin as a "gap" market, denying its functionality as a payment method. Reversing the RBA's conclusion above, Bitcoin can also be seen as a constant demand in niche markets.

Iran's inflation rate, for example, is rising by more than 50 percent in April this year due to U.S. economic sanctions and other effects of the current conflict between the United States and Iran. Bitcoin is increasingly being chosen as a haven from this expansion of anxiety over Iran's legal currency Rial.

In Venezuela, which recorded more than 810,000 percent inflation last month, the similar trend--preference for bitcoin--was shown as it has a significant amount of value storage and utilization aside from speculative purposes. As RBA pointed out in this use case, however, question marks remain on the use of cryptocurrency as a means of payment method.

Reporter Gina Lee (news@dailycoinews.com)의 기사 더 보기

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