Reserve Bank of Australia (RBA) Governor, Ms. Michele Bullock, has provided a frank assessment of cryptocurrencies, stating that digital assets like Bitcoin have no role in the Australian economy.
"Don't call it an alternative currency," Ms. Bullock said at the Australian Securities and Investments Commission (ASIC) Annual Forum on Thursday. "It's not a currency, it's not money; it's just used as an asset. I really don't see a role for it in the economy or the payments system in Australia."
This remark comes as Bitcoin, the world's largest cryptocurrency, surged to a record high above $93,000 last week, partly due to Donald Trump's re-election and potential changes in crypto regulation in the United States.
Industry leaders warn that this conservative stance could have long-term consequences for Australia's position in the global financial market.
"Governor Bullock's view that digital assets like Bitcoin are 'not money' but just 'an asset' reflects a traditional mindset, overlooking the transformative potential that cryptocurrencies and blockchain technology bring," said Caroline Bowler, CEO of BTC Markets. "I believe Australia needs to adopt a more open and flexible approach."
Bowler cautioned that Australia's hesitation to embrace cryptocurrency-related innovations could cause the country to miss out on opportunities to become a leader in the global digital economy.
ASIC Chair, Joe Longo, also expressed agreement with Bullock's concerns, stating that Bitcoin's recent price surge is a classic example of the "greater fool theory".
Despite regulatory skepticism, a report from Finder.com.au shows that nearly 27% of Australians express interest in owning cryptocurrencies, viewing them as a long-term investment rather than a speculative asset.
While Australia remains hesitant, the United States is taking a completely different direction. President-elect Donald Trump pledged to make the United States the "cryptocurrency capital of the world" and is pushing for discussions on establishing a strategic Bitcoin reserve fund to reduce the national debt.
"The growing interest in Bitcoin and the widespread adoption of digital assets reflect a global shift in how we define value and modes of exchange," Bowler observed. "Cryptocurrencies are becoming a legitimate, mainstream, and purposeful means of exchanging value that transcends national borders. The question is not whether Australia will embrace this evolution, but how."
Despite the cautious approach of Australian regulators, the domestic market continues to show increasing interest in digital assets. Last month, Monochrome Asset Management announced plans to launch the first Ethereum ETF in Australia on the Cboe, aiming to meet the growing demand from investors.
Bowler sees this as a clear sign that Australians are becoming increasingly interested in cryptocurrencies.
"Cryptocurrencies are not a negative term," Bowler affirmed. "They represent a fundamental shift in how we understand value, ownership, and financial transactions."
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