What characteristic makes Australia's payment infrastructure considered hybrid?

The characteristic that identifies Australia's payment infrastructure as hybrid is its use of settlement in central bank money. A hybrid payment infrastructure combines different methods and systems for processing payments, allowing for both traditional and innovative payment mechanisms to coexist. In Australia, the ability to settle transactions in central bank money provides a secure and stable foundation for the payment system, supporting both real-time and deferred settlement models. This characteristic enhances efficiency and reliability in the operations of various payment methods, incorporating both electronic and traditional transaction systems.

Settlement in central bank money plays a critical role as it underlines the integration of government-backed currency within the infrastructure, distinguishing it from purely private alternatives or cryptocurrencies. Such a foundational aspect supports confidence and trust in the payment system, crucial for both consumers and businesses. By allowing transactions to be settled using a trusted central authority, Australia efficiently navigates the dynamics of evolving payment technologies while maintaining the robustness of its currency.