Treasurer Chalmers Champions Cryptocurrency to Modernise Australia’s Financial System

According to a report in The Sydney Morning Herald, Treasurer Jim Chalmers believes Bitcoin and Co are able to assist in upgrading the Australian financial system.

The comments come despite Reserve Bank of Australia (RBA) Governor Michele Bullock recently saying that crypto has no role in the “Australian economy or payments system”.

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Bullock said Bitcoin is “not a currency, it’s not money”, while adding that she doesn’t fully understand it.

Crypto Can Help Modernise Australian Finance System, Says Chalmers

However, Chalmers seems to believe that crypto indeed can be beneficial for Australia, saying:

I think crypto has a role to play, and it’s part of modernising and innovating in our financial system.

Australian Treasurer Jim Chalmers

While also pointing to the illicit use cases, the Treasurer added that the government needs to “make sure we don’t overdo that and stomp on part of the industry”. 

Chalmers noted the need for a delicate balance between protecting investors and stifling innovation.  

Our interest here is to recognise it’s legitimate, it’s important, it’s growing. We need to make sure that people are protected, but we don’t want to overdo it in a way that stifles an industry we believe in.

Australian Treasurer Jim Chalmers

Chalmers also added that solely focusing on the element of crime in crypto – which is not actually a great tool for criminals who prefer the anonymity of cash – would miss the point:

I think we would be doing ourselves a disservice if we overfocused on the downside and didn’t sufficiently focus on the upside.

Australian Treasurer Jim Chalmers

Bitcoin as a Reserve Asset an Increasingly Popular Idea Globally

The comments come on the back of Donald Trump’s election win in the United States and the promise to establish a Bitcoin reserve for the US, among other pro-crypto initiatives.

Overall, the global climate for crypto looks more friendly than ever, with several countries looking into establishing Bitcoin reserves, as well as pension funds and the like starting similar initiatives.

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For example, Christian Lindner, the former German finance minister has been calling recently for the largest European economy to adopt a more proactive approach when it comes to crypto assets.

Crypto assets now account for a significant part of the increase in global prosperity. In the USA, the Federal Reserve is even considering including them in its reserves. Frankfurt should also look into this. Germany and Europe must not allow themselves to be left behind again.

Christian Lindner

Lindner’s comments are encouraging, though should be read in the context of the recent sales of Bitcoin by Germany. Additionally, it’s a little ironic that the former minister would bring this up now, since he had the chance to work toward establishing a Bitcoin reserve when he was in office.