Reserve Bank of Australia Governor Philip Lowe has called data the “new oil of the 21st century”, saying investment in data capabilities will be key to Australia’s prosperity.
“There are opportunities for digital innovation across all sectors of our economy. Almost every organization needs a strong digital capability to perform, innovate and increase productivity,” Dr Lowe said in a speech at the Melbourne Business Analytics Conference.
“Technology and data analytics also hold the key to solving many of the great challenges of our time, including controlling the pandemic, combating climate change and responding to growing cyber threats. »
Australia should invest in a digital workforce, equipped with skills in predictive analytics, machine learning and artificial intelligence, Dr Lowe noted.
The government has decided to focus on the digital economy, with the Prime Minister recently issuing an invitation to workers to migrate at the Singapore FinTech Festival.
But the RBA has also moved to make its own investments in digital infrastructure, with Dr Lowe noting that the central bank has made data one of its internal strategic areas for the coming years.
The organization has established an enterprise data office, responsible for managing its data and methodologies, including the use of machine learning and big data. The central bank is developing technology for a number of its initiatives, including loan data analysis and the new payments platform.
“During the pandemic, we have been able to access and analyze a wider range of data to get real-time readings of economic conditions in a way that was not possible in the past,” Dr Lowe said.
The RBA is also researching the technologies and policy implications of rolling out its own wholesale central bank digital currency, which could use distributed ledger technology to support the settlement of transactions in the interbank system, the RBA said. Dr. Lowe.
The central bank partnered with CBA, NAB and Perpetual, as well as blockchain technology provider ConsenSys Software to explore the currency’s implementation in November.
The parties involved said they plan to release a report with key findings in the first half of 2021.
“Some of this work is taking place in the RBA’s internal innovation lab, where we are collaborating with external parties on a proof of concept,” commented Dr Lowe.
“We look forward to sharing more details in due course.”
The RBA and the Payments Systems Board have also expressed support for forms of digital identity that can be used across the public and private sectors.
“An effective digital identity system is important for promoting competition, security and innovation in the digital economy,” said Dr Lowe.
“The Australian Government is also supporting digital identity services to conveniently and securely access government services online.”
