RBA Governor Bullock: Comprehensive reform of the payment system to strengthen cross-border payments and security resilience

ChainCatcher news, according to Bloomberg, Reserve Bank of Australia (RBA) Governor Michele Bullock delivered a speech outlining four key priorities to modernize the national payment system, emphasizing that innovation and security can go hand in hand.

Bullock stated that the top priority is to upgrade Australia's interbank payment infrastructure, gradually replacing the aging Bulk Electronic Clearing System (BECS), with a plan for implementation to be launched by mid-2026, aiming for real-time, 24/7 payments with rich data support. Secondly, the RBA is collaborating with the industry to enhance the efficiency of cross-border payments, reduce costs, and increase transparency. Thirdly, the central bank will continue to invest in fraud prevention and quantum-safe encryption upgrades, preparing to migrate the card system to the "quantum-safe protocol" AES standard. Finally, the RBA will strengthen the operational resilience of the system to ensure that the payment network remains stable under the development of digital currencies and central bank digital currencies (CBDCs).

Bullock added that despite the widespread adoption of digital payments, the RBA remains committed to maintaining cash circulation and is working with major banks and regulatory bodies to explore new cash distribution models to ensure long-term sustainability.