The proposal sets out disclosure requirements for banks that may make China’s central bank digital money available for use in Australia. It also seeks to establish licensing frameworks for stablecoin issues.
According to a draft bill on Monday, Andrew Bragg, an Australian politician, wants to make China more open to the widespread use its digital currency, the digital Yuan.
Bragg, who is both a senator for New South Wales in Australia and a member the opposition, proposes stringent reporting requirements for banks to ensure that the digital currency can be used in Australia.
The digital yuan is being tested for cross-border transactions
China is currently conducting cross-border tests for a digital version its sovereign currency. The implications of a digitally widely used yuan are being considered by lawmakers from major countries around the globe.
Nine Republican senators from the U.S. introduced a bill that would establish rules and guidelines for the digital yuan.
Bragg’s draft of “Digital Assets (Market Regulations) Bill 2022″, identifies seven Chinese banks that have branches in Australia. This could potentially allow for the use of a digital yuan within the country.
The bill establishes disclosure obligations for designated banks, including reporting on the number of Australian businesses accepting payments using digital currency facilitated by the bank and the total amount held in digital wallets of Australian customers of the banks.
According to the proposed rules, individuals and entities who violate reporting requirements face penalties.
Australia’s new labor government has launched token mapping, to identify the characteristics of all crypto tokens and how they are managed. The central bank has also started a pilot testing to determine potential uses for Australia’s CBDC.
