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The country’s Financial Services Minister, Jane Hume, has publicly spoken in favor of cryptocurrency, claiming that it is not a passing ‘fad’ and is here to stay.
Tread Cautiously, Not Fearfully: Financial Services Minister
In her speech at an Australian Financial Review Summit on Monday, Hume criticized the rising fear against cryptocurrency in the government, claiming that it is ‘not going away any time soon,’ despite the government’s stance. She advocated treading cautiously in the field but warned against being too fearful of it, as she believed the technology to be similar to other previous industry disruptors like the iPhone. Her speech also pointed out that any opposition against cryptocurrency today is comparable to the opposition faced by disruptive technologies like the iPhone or the internet.
She stated,
“Don’t be the person who thought the iPhone would never take off because people would prefer to have their music and telephone on separate devices. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”
In her speech, Hume spoke of the incredible opportunities presented by decentralized finance underpinned by blockchain tech. She also warned that being too fearful of this new tech could result in Australia being left behind in the crypto race and the global financial revolution.
RBA Official Forecasts Massive Market Crash
Hume’s pro-crypto speech is coming just days after a Reserve Bank of Australia (RBA) official predicted a tremendous crash in the crypto market. RBA head of payments policy Tony Richards informed the Australian corporate Treasury Association that the ‘current fervor’ around cryptocurrencies might not continue in the future as he forecasted a market-wide crash in the range of $2.6 trillion.
He commented,
“Households might be less influenced by fads and a fear of missing out and might start to pay more attention to the warnings of securities regulators and consumer protection agencies in many countries about the risks of investing in something with no issuer, no backing, and highly uncertain value.”
Furthermore, Richards also pointed out other issues stemming from the crypto industry like the high energy usage, anonymity-related tax and security concerns, and the on and off-ramps between crypto and the traditional financial sector. According to Richards, establishing strong regulatory frameworks for stablecoins could lead to a crypto market crash. Richards also stated that he didn’t believe in the accuracy of the Senate report which estimated that about 17% of Australians held crypto assets.
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