While the most visible trend has been the proliferation of the crypto-assets, including so-called ‘stablecoins’, other developments such as the decentralised finance or ‘DeFi’ model have equally profound and potentially more long-lasting impacts.
The Reserve Bank is supportive of private innovation provided risks are managed, including risks to financial stability and monetary sovereignty.12 We also work with other regulators to address a wider range of risks such as market integrity, money laundering, as well as risks for the holders of these assets.