The country’s top finance official, David Murray, said the Australian government is concerned about the volatility of cryptocurrencies like Ethereum. The comments come after a recent surge in price has brought cryptocurrency to mainstream attention and prompted warnings from global regulators.
The “is cryptocurrency legal in australia” is a question that has been asked many times. The Australian official who owns Ethereum says it is no threat to the country’s financial system.
According to Tony Richards, the head of payments policy at the Reserve Bank of Australia (RBA), cryptocurrencies do not pose a danger to the central bank’s operations.
The soon-to-be-retired central bank employee, who acknowledged to having a cryptocurrency wallet since June 2014, does not believe cryptocurrencies pose a threat to the Australian dollar.
Australia’s monetary sovereignty is not threatened by cryptocurrency.
Richards told the Australian Corporate Treasury Association, “I don’t consider them as a danger to the Australian currency, our monetary sovereignty, or the Reserve Bank’s capacity to conduct monetary policy.”
While he acknowledges that interest in cryptocurrency is growing, he is cautious of how broadly it is utilized in Australia.
Richards said, “I can’t see stores advertising their pricing in cryptocurrencies, firms releasing their annual reports in cryptocurrencies, or a lot of people wanting to be paid in cryptocurrencies,” while recognizing that investor interest in cryptocurrencies is rising, from individuals to hedge funds.
“While cryptocurrencies have definitely attracted the interest of many, no doubt fueled by influencers and celebrity tweets,” Richards said, referring to studies that estimate 20% of Australians own cryptocurrency.
He doesn’t think such figures are credible since internet polls don’t represent all sectors of the population. He was referring to individuals who do not use the internet on a daily basis, such as the elderly and those who live in rural regions.
It’s possible that cryptocurrency will only have a few specialized applications.
Richards also revealed that he has had a bitcoin wallet since June 2014, but that “the quantities in question are still rather minor.”
He stated, “After all, it’s part of my job to attempt to comprehend new payment instruments and technology.”
He said that his first purchase was “only a little quantity of Bitcoin (BTC),” but that he has since diversified and purchased Ethereum (ETH) in August 2018.
Richards addressed a number of difficult variables that might have an influence on the present increased pace of adoption, which he said is best illustrated in the mind-boggling proliferation of meme cryptos, citing Dogecoin (DOGE) and Shiba Inu as examples (SHIB).
According to him, governments may pay more attention to crypto mining because of its large energy consumption, while limiting the use of crypto to facilitate financial crime and the black economy may get more attention.
Retail investors, according to Richards, may become less persuaded by fads and more wary about buying in assets with “no issuer, no support, and extremely unknown value.”
a larger context
Although most large economies are exploring central bank digital currency (CBDC) issue, none have completed their plans, according to the RBA source.
“RBA staff have also not been persuaded to yet that a compelling policy case has developed in Australia for a CBDC,” he said, adding that the Bank has been “stepping up its CBDC research” given the likelihood that the “balance might change towards a case for issuance.”
Australia’s largest bank revealed earlier this month that it would provide bitcoin trading via its smartphone app. The Commonwealth Bank of Australia (CBA) has formed a strategic relationship with Gemini, a cryptocurrency exchange, and Chainalysis, a worldwide blockchain data platform. Through the CommBank app, CBA clients will be able to purchase, sell, and hold up to ten different cryptos.
The Senate’s Committee on Australia as a Technology and Financial Centre produced a study in October that suggested a complete crypto framework that, if implemented, would make the nation more attractive to crypto enterprises.
“It will be intriguing to observe how things change over the next decade,” Richards concluded, and he was correct.
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The “Australian official who owns Ethereum says it is no threat to the country’s financial system | how to invest in cryptocurrency” is a story about an Australian official, who says that Ethereum is not a threat to the country’s financial system.
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