A draft digital assets bill was unveiled on Monday, and it targets China’s Digital Yuan and is being proposed by Australian Senator Andrew Bragg. Phase two of China’s trials for cross-border transactions just started. China will begin implementing cross-border transactions utilizing central bank digital currency (CBDCs) after the trials are over.
This is what Bragg’s proposed cryptocurrency law is for. The document suggests stringent reporting specifications for financial institutions that would allow Australia to use the digital yuan. Seven Chinese banks are mentioned, including the Bank of China and the Agricultural Bank of China. Australia is home to these banks’ branches. They can therefore facilitate the usage of the Digital Yuan in Australia.
The bill also establishes disclosure standards for those banks. This includes disclosing the number of Australian companies that have accepted payments made using digital yuan that was made possible by the bank as well as the total amount of digital yuan that Australian clients of the authorized branch have stored in cryptocurrency wallets. The measure also suggests penalties, such as fines, for failure to comply with these reporting obligations.
The conclusion of the cross-border trials, which might have a considerable effect on the Australian economy, is the source of Bragg’s long-term concern. Chinese state may possess “enormous strength, economic and strategic capabilities that it does not currently have,” according to Bragg.
Additionally, the draft bill suggests creating licensing frameworks for cryptocurrency exchanges, custody services, and stablecoin issuers.
