Shayne Elliott, the outgoing CEO of ANZ Group Holdings Ltd, has advocated for the digitization of national currencies to maintain government and central bank control over monetary systems. He expressed concerns that failing to modernize could result in a loss of currency control to cryptocurrencies like Bitcoin.

During his recent presentation at the Reserve Bank of Fiji, Elliott shared his skepticism about cryptocurrencies, stating, “I’m not a believer… unless I’m a criminal.” He highlighted that if digital currencies were to dominate, central banks would lose their authority over monetary policy, which could have significant implications for economic stability.

However, Elliott pointed out the potential for Central Bank Digital Currencies (CBDCs) as an innovative solution. He believes these digital currencies could revolutionize financial transactions by making them faster and cheaper, possibly reducing transaction costs to zero. This could spur unprecedented innovation across various sectors.

Elliott noted that Australia is already making progress with its CBDC initiatives, including ANZ’s pioneering launch of the A$DC, the first bank-issued stablecoin linked to the Australian dollar. He emphasized that as the world increasingly digitizes, central banks are likely exploring their own versions of digital currencies to keep pace and safeguard their monetary systems.

In contrast, Elliott reminded that cryptocurrencies like Bitcoin are not recognized as legal tender in Fiji, and the Reserve Bank of Fiji has warned that involving cryptocurrencies in purchases or investments is illegal.

The conversation around digitization and CBDCs represents a hopeful shift towards a more innovative and efficient financial system. This push towards modernization suggests that central banks are actively engaging with the evolving landscape of digital assets, which could enhance financial inclusivity and efficiency in the long term.

In summary, Elliott’s insights encourage a proactive approach to digital currency implementation to ensure that traditional financial institutions retain their influence in an increasingly digital world.