The Australian Treasury in December 2021 has proposed creating a regulatory framework to leverage cryptocurrencies. The regulation aims to create a licensing framework for cryptocurrency exchanges and will also focus on payments. Australia – with its strong and fast-growing financial sector – has focused on opportunities to exploit the convergence of finance and technology.
“Australia has the opportunity to be among the world’s leading countries in exploiting this new technology,” said Treasury Minister Josh Frydenberg.
According to government data, around 55 million non-cash payments are made every day in Australia, with nearly half of the population using the phone to make payments. While the number of Australians transacting in cryptocurrencies has increased by 63%, compared to last year. Australians have also shown that they are the first to adopt new technologies. It is estimated that the technology sector already generates $ 167 billion in production and employment. Specifically, as part of its digital economy strategy, the state has committed approximately $ 1.2 billion to implement electronic invoicing, modernize business registers, and create and expand consumer data rights, in addition to having invested several millions more in improving the nation’s digital capabilities.
Australia therefore intends to move quickly to capitalize on its competitive advantage, which it holds together with a handful of other countries in this field. The government intends to launch consultation on the feasibility of a digital central bank, with advice to be provided by the end of 2022. Among other things, by mid-2022, the Australian government is expected to have completed consultations on establishing a licensing framework for cryptocurrency exchanges (custody, deposit and trading); undertake a mapping exercise of existing cryptocurrencies and tokens; examine the potential of so-called Decentralized Autonomous Organizations (DAOs) and how they can be incorporated into Australian legal and financial regulations.
Australia’s intention is to be among the leaders in this emerging and fast-growing economy, which has nearly endless potential applications.
