The Australian Prudential Regulation Authority (APRA), one of the top governing authorities in Australia, is to review the payment mechanisms. In its recent report, APRA cleared that they will be reviewing the digital wallets holding higher amounts. They took an example of Calibra, a digital wallet developed by Facebook for its yet to launch Libra token.
As per the framework they proposed before the Senate Select Community on Financial and Regulatory Technology, they revealed that they would likely be reviewing Facebook’s Calibra.
Outline of the new proposed framework
The council comprising the Australian Security and Investments Commission (ASIC), the Reserve Bank of Australia (RBA), and Federal Treasury (FT) proposed the framework to the Australian Prudential Regulation Authority (APRA). The Australian regulatory body was firm and made a comment in the proposal where they are planning to oversee facebook’s Libra. This remark was mentioned while outlining the new regulatory framework.
To serve the purpose, APRA mentioned that the proposed framework will not only be beneficial for the present financial situation, but it will be able to accommodate the futuristic advancements in technology and financial aspects. They are trying to facilitate regulations taking into consideration all the expected revolutions and changes that might be effective going forward.
APRA will likely be examining all the digital wallets that hold bigger values
Evidently, there are so many digital wallets that hold bigger amounts for a reasonable amount of time. And possibly there might be criminal preceding going against these digital wallets i.e. they might have been sued in many countries for its operations.
The proposal initiated by the authorities will oversee such digital wallets. While briefing about the framework, they cleared their point by citing an example of Facebook’s digital wallet, Calibra.
The framework also indicated that gift cards and travel cards will be under minimal regulation. The proposed framework is with a view of regulating the current and futuristic economic ecosystems. The authorities are confident enough to make it run cohesively.
“The new rule is focussed not only to be fit for purpose for the current financial system but also be able to accommodate futuristic 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 the wallets that are widely used as a means of payment and store a significant value for a reasonable amount of time.”
A significant amount of changes are expected to happen if the regulation is accepted and implemented in Australia.
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