Cryptocurrencies are “not a fad” and will become an inherent part of Australia’s financial system, according to the government.
Jane Hume, the Minister of Digital Economy, told the AFR Super and Wealth Summit that cryptocurrency “isn’t going away anytime soon” and needs to be adopted.
“Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream,” Ms. Hume said.
Jane Hume, Minister for Digital Economy, said Australia needs to embrace cryptocurrency as part of the financial system.
The cryptocurrency minister’s adoption came just a week after Reserve Bank payments policy chief Tony Richards said many regulators around the world remained “skeptical” of the consideration of the monetary alternative.
Dr Richards also asked to what extent cryptocurrencies are held in Australia, despite a recent Senate survey which found that 17% of Australians invest in cryptocurrencies.
But Ms Hume said at the summit that Australia needs to “forge its own trail” on decentralized blockchain-based finance.
“Decentralized finance backed by blockchain technology will present incredible opportunities – Australia must not be left behind by fear of the unknown,” the minister said.
“If the last 20 or 30 years have taught us anything, it’s that all innovation starts with a disruption and ends with a familiar name. “
Decentralized finance, or DeFi, does not use traditional banks, brokerage houses, or stock exchanges.
Instead, blockchain-based systems are used to perform financial transactions.
The Australian government will become a central part of the country’s financial system. Pictured is a promotional event in El Salvador to mark the use of bitcoin in the country.
Senator Hume praised the companies that have adopted blockchain.
“Just recently, we saw Commonwealth Bank allow its customers to hold and use bitcoin and other cryptocurrencies through its 6.5 million user banking app,” she said.
“This will make CBA the first Australian bank – and one of the few banks in the world – to offer customers this kind of access.”
The federal government has yet to put in place regulations for these developments.