'Not a Fad': Australian Senator Backs Bitcoin and Crypto Against 'Fearful' Authorities

Senator Jane Hume said that Australia must “forge a new trail” in cryptocurrency.

By Radhika Parashar | Updated: 23 November 2021 14:26 IST

'Not a Fad': Australian Senator Backs Bitcoin and Crypto Against 'Fearful' Authorities

Photo Credit: Unsplash/ Dmitry Demidko

Bitcoin is the oldest cryptocurrency in the world and very popular in Australia

Highlights

Australia’s Digital Economy Minister is pro-crypto
She has suggested Australian government to be caution, not fearful
Bitcoin is gaining popularity in Australia

Jane Hume, the Digital Economy Minister of Australia, validated the crypto space saying that it is not a “fad”, and suggesting the government to be open to upcoming tech innovations. Senator Hume made the statements while addressing the Australian Financial Review's Super and Wealth Summit in Sydney. The minister has further asked the Australian government to forge a trail into the crypto world before other nations adopt the culture leaving the land down under behind. Caution, not fear should be the approach towards the crypto space, Hume said.

“I commend industry for embracing innovation and developments in this space, particularly around blockchain. As an industry, and as a government, we need to acknowledge this is not a fad. We should tread cautiously, but not fearfully,” news portal InnovationAus quoted Hume as saying. “Decentralised finance underpinned by blockchain technology will present incredible opportunities – Australia mustn't be left behind by fear of the unknown.”

Hume's support for crypto comes at 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”.

As per a report by SkyNews, Tony Richards, the head of payments at the RBA believes young investors should not get into the crypto space amid risks of price collapses.

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

The crypto adoption scene seems to be caught amid a turmoil in Australia, where authorities and oppositions are locking horns regarding the legitimacy of the crypto space.

Earlier in October, a finance committee tabled a report in the Australian parliament, focussing on new licensing regimes, tackling environmental problems related to crypto mining, and addressing the growing issue of debanking.

Recently, the CEO of Australia's largest bank, Commonwealth Bank also predicted larger risks in not getting entering the digital asset industry timely and has signed partnerships with leading crypto players.

As per research firm Statista, Bitcoin is the leading crypto-token in Australia and diversifying investment portfolio is the main reason why people are investing in cryptocurrencies there.

The government of several countries around the world including India are sceptical about the crypto space. Some of the main reasons of concerns include the “unregulated and independent” nature of cryptocurrencies taking away the powers of central banks, the high energy consumption of crypto-mining, as well as the misuse of these untraceable digital assets for anti-social purposes like terror financing.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: Cryptocurrency, Crypto Space, Tony Richards, Australia, Bitcoin, Jane Hume

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More