Updated 08 Dec, 2021

Australia to Overhaul Its Financial System and Accommodate Crypto

Key Takeaways:

  • Australia will introduce crypto-friendly reforms to embrace bitcoin and digital assets
  • The move highlights growing acceptance of crypto on a state level

Australia Set to Embrace Bitcoin in Latest Finance Reform

Australia is set to reform the way its financial system works by allowing cryptocurrency to play a role. “It represents the most significant reforms to our payments system in 25 years,” said Josh Frydenberg, Australia’s Treasurer.

Mr. Frydenberg is planning to introduce a sweeping agenda that will aim to create the biggest reform to Australia’s payments system. In more detail, the new rules are designed to accommodate the fast-developing cryptocurrency market.

“The comprehensive payments and crypto-asset reform plan I am announcing will firmly place Australia among a handful of leading countries in the world,” Mr. Frydenberg said. “As more Australians utilize these technologies and invest in these digital assets, it is important that a robust regulatory regime underpins their interactions.”

Bitcoin and cryptocurrency trading is among the top priorities in the plan. This said the Australian government is seeking to provide more protections and opportunities for individual and institutional investors in crypto. Also, the plan would hold some rules and obligations for businesses, offering crypto services.

Crypto Adoption Goes on a Government Level

With the growing popularity of bitcoin and cryptos, many governments find they can no longer ignore the digital asset market. As a result, lawmakers around the globe have shifted their focus to hammer out rules and regulations over cryptocurrency.

In that context, crypto market participants are largely in favor of rules that would allow the market to continue expanding.

Presently, it is estimated that about 400 million in the world own bitcoin or other cryptocurrencies. With this in mind, the adoption cycle is relatively early on its development trajectory. Moreover, major economies are looking to embrace digital assets as part of traditional financial systems.

The US, for example, has stated multiple times it has no intention to ban bitcoin or crypto. In fact, the US Federal Reserve, the Treasury Department, and the Senate have expressed optimism toward the crypto industry.

Against the backdrop of cryptos going mainstream, projections for growth remain strongly positive. To this end, analysts are optimistic in their forecast for digital assets as they predict continued growth for the emerging market.