Treasury has issued a Consultation Paper on developing a Strategic Plan for the Payments System.
The objective of the Strategic Plan is to provide industry and regulators with clarity about the Government’s policy priorities, with a view to supporting the resilience of payments system, strengthening the powers of regulators to adapt to new payments methods and promoting the transition to more modern payments infrastructure.
The Consultation Paper says the key priorities are:
- Promoting a safe and resilient payments system;
- Ensuring the regulatory framework is fit-for-purpose and promotes competition;
- Ensuring alignment with the broader digital economy transformation;
- Modernising payments infrastructure.
The Consultation Paper contains a Table of supporting initiatives and actions.
The Treasurer has announced that in addition to the Strategic Plan, the Government will also:
- Update the Payment Systems (Regulation) Act 1998 to ensure the Reserve Bank of Australia has the ability to regulate new and emerging payment systems, such as digital wallet providers.
- Consult on a new Ministerial designation power that would allow particular payments services or platforms that present risks of national significance to be subject to additional oversight by appropriate regulators.
- Consult on a new payments licensing framework for payment service providers. This will provide clarity on the types of payment activities that are regulated, making it easy for a business to understand whether they require a licence and their associated regulatory obligations.
Treasury will continue to work with the Reserve Bank of Australia to explore the policy case for an Australian central bank digital currency.
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Author: David Jacobson
Principal, Bright Corporate Law
Email: djacobson@brightlaw.com.au
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.
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