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.

Image Source: Pixabay 

Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Authors may own the crypto currency they discuss. The information and content are subject to change without notice. Visionary Financial and its affiliates do not provide investment, tax, legal or accounting advice. This material has been prepared for informational purposes only and is the opinion of the author, and is not intended to provide, and should not be relied on for, investment, tax, legal, accounting advice. You should consult your own investment, tax, legal and accounting advisors before engaging in any transaction. All content published by Visionary Financial is not an endorsement whatsoever. Visionary Financial was not compensated to submit this article Please also visit our Privacy policy; disclaimer; and terms and conditions page for further information.

You May Also Like
SPiCE VC

Fusang Exchange Lists 1st Digital Security – SPiCE

History was made on September 1, 2020, when the first fully licensed…

Norwegian Seafood Association Collaborating With IBM Blockchain To Power The Supply Chain

In recent developments, the Norwegian Seafood Association plans to enhance their supply…

BitGo Prime Partners With Two Firms To Offer Large Institutional Loans In Digital Assets

Clear Hedge Capital recently announced that it was collaborating with BitGo Prime to offer…

Telegram’s New Cryptocurrency (Gram): Pre-sale

It is no news that one of the top instant messaging platforms…

Appics, the Blockchain-Powered Social Media Platform that Wants to Return Power to Users

Appics is a new social media platform that wants to reward users…

Wissam Al Mana- The Ex-Husband of Janet Jackson, Sues Facebook Over Crypto Ads Scam

Wissam Al Mana, a Qatari billionaire and the ex-husband of Janet Jackson,…

Association Behind Bitcoin SV Registers As Swiss Non-Profit In Switzerland

The Bitcoin Association, an organization in the crypto sector that is committed…

Types of Cryptocurrency: Simplified Explanation of Different Crypto Structures For Beginners

Despite the cryptocurrency market being just a decade old, there are over…

“Dual Citizenship, Citizenship through Investment and Global Citizenship” Conference Istanbul 2020

The most comprehensive cryptocurrency conference in MENA and the Eurasia region, “Blockchain…

SIMBA Pay Launches Using The Stellar Network

On August 11, 2020, SIMBA Pay announced that it had launched its payment app…