Australian Officials Backs Bitcoin and Crypto Against ‘Fearful’ Authorities

Senator Jane Hume said Australia must “make a new mark” in cryptocurrencies.

Australia’s Minister of Digital Economy Jane Hume validates the crypto space by saying it is not a “fad”, and suggests the government to be open to upcoming technological innovations. Senator Hume made the statement while addressing the Australian Financial Review’s Super and Wealth Summit in Sydney. The minister further asked the Australian government to make a mark in the crypto world, leaving the land behind before other countries adopt the culture. Hume said the outlook for the crypto space should be careful, not fearful.

“I commend the industry for embracing innovation and development in this area, especially around blockchain. As an industry, and as a government, we have to admit that this is not a fad. We should tread carefully, but not in fear,” news portal InnovationOw quotes Hume. “Decentralized finance backed by blockchain technology will provide incredible opportunities – Australia should not be left behind by the fear of the unknown.”

Hume’s support for crypto is a direct attack on a Reserve Bank of Australia (RBA) official who last week warned people against the crypto space, actually calling it a “fad”. 

According to a report in Skynews, RBA’s Head of Payments Tony Richards believes that young investors should not venture into the crypto space amid the risk of falling prices. 

“Some surveys claimed that around 20 percent of the Australian population owned cryptocurrencies, and one claimed that Dogecoin alone held five percent of Australians. I must say that I find these figures somewhat unimaginable,” Richards was quoted as saying in a report by the Financial Review.

The cryptocurrency adoption scene seems to be caught in the midst of turmoil in Australia, where officials and opposition are locking horns about the legitimacy of the crypto space. 

Earlier in October, a finance committee submitted a report to the Australian Parliament, focusing on the new licensing regime, to tackle environmental problems related to crypto mining and the growing issue of debanking.

Recently, the CEO of Australia’s largest bank, Commonwealth Bank, also predicted huge risks of not entering the digital asset industry on time and signed partnerships with major crypto players. 

According to research firm Statista, bitcoin is the leading crypto-token in Australia and diversifying investment portfolios is the main reason people are investing in cryptocurrencies there.

Governments of many countries around the world including India are skeptical about the crypto space.Some of the main reasons for concerns include the “irregular and independent” nature of cryptocurrencies that take away the powers of central banks, the high energy consumption of crypto-mining, as well as the misuse of these non-traceable digital assets. Social objectives such as financing of terrorism.