The Australian Prudential Regulation Authority (APRA) is studying to oversee digital wallets such as Facebook’s Libra project.
The market regulator has submitted a regulatory framework to the Senate, in which it proposed to supervise digital wallets and data protection projects.
“The framework is intended not only to be fit for purpose for the current financial system but also be able to accommodate future developments and technological advances, such as proposals for global stablecoin eco-systems that have been the subject of significant attention in recent months,” APRA said.
The market watchdog highlighted the significance of digital wallets as they are famous for increasing online purchases.
“Some, but not all, digital wallets hold stored value on behalf of customers and are pre-paid facilities. Others (such as Apple Pay) hold customers’ credit/debit card details and only facilitate payments from that nominated account,” APRA said.
APRA is cooperating with several agencies to introduce a data protection approach. It has already formed a standing committee to coordinate data collection with different agencies such as the Reserve Bank of Australia.
Ueli Maurer, Switzerland’s President, earlier said Facebook’s cryptocurrency Libra has failed and should be amended before sending to regulators for approval.
It was also reported that Libra Association, an independent entity governing the proposed Libra digital currency, has formed a committee to follow up on the ongoing project developments.