Strategic Priorities for Payments Policy

Australia's payments system is evolving rapidly, with the use of electronic payments continuing to grow. This has been driven by ongoing advances in technology and changing expectations of end-users for convenient and safe payments. The Bank has an important role to play in ensuring that payment services remain efficient, reliable and secure, while also making sure the needs of all users of the payments system are adequately met.

The Bank will continue to investigate the case for a central bank digital currency and to explore the technical, operational and policy implications. This will involve engaging with a wide range of stakeholders and participating in collaborative projects. The Bank will also undertake work to understand other technology-driven changes to payment systems and FMIs, including the implications for competition, efficiency and financial stability.

The Bank will engage with new players in the payments system to better understand how the landscape is changing and identify and address concerns relating to access, competition and efficiency. The Bank will continue to work with the government to ensure that the regulatory environment remains accommodative of new players in the payments system. This will include responding to recommendations stemming from the Treasury Payments System Review.

The Bank supervises infrastructure that is critical to the stability of the financial system. The Bank will focus on the efforts that FMIs are making to manage cyber threats and minimise disruptions to financial markets from operational incidents. Retail payment services also play an important role in supporting economic activity. The Bank will monitor the reliability of these services and consider whether further measures are needed to enhance operational resilience.

The Bank is working with the government on implementing reforms to the regulation of FMIs, including stronger supervisory powers and a crisis management regime for Australian CS facilities. These reforms will help to maintain the stability of the financial system, by ensuring that the Bank and ASIC have the powers to respond appropriately and quickly to a crisis involving the potential failure of a CS facility.