Australia ‘Risks’ Falling Behind as RBA Governor Rejects Crypto’s Financial Role

Reserve Bank of Australia (RBA) Governor Michele Bullock recently delivered blunt criticism of crypto, stating that digital assets such as Bitcoin have no role in the Australian economy.

“Don’t call it an alternative currency,” Bullock said at the Australian Securities and Investments Commission (ASIC) annual forum on Thursday. “It’s not a coin, it’s not money; it is used as a kind of asset class. I don’t really see a role for it in the Australian economy or the payments system.”

The governor’s comments come as the world’s largest cryptocurrency rallies almost $100,000 last week, driven in part by Donald Trump’s re-election and a possible shift in US crypto regulation.

Industry leaders warn that such a conservative view could have long-term implications for Australia’s position in the global financial arena.

“Governor Bullock’s assertion that digital assets like Bitcoin are ‘not money’ but ‘some kind of asset class’ reflects a conventional view that misses the larger, transformative potential of cryptocurrencies and blockchain technology,” said Caroline Bowler, CEO of BTC Markets . a statement Declutter. “I believe a more open-minded approach is needed.”

Australia’s reluctance to embrace crypto-based innovations “risks” the country’s chance to lead in the global digital economy, Bowler added.

ASIC chairman Joe Longo echoed Bullock’s concerns at the forum and dismissed the recent rise in figures Bitcoin praising it as a classic example of the “greater fool theory.”

Despite the skepticism of Australian regulators, a Finder.com.au The report shows that almost 27% of Australians have expressed an interest in owning cryptos, viewing them as a long-term investment rather than simply a speculative asset.

As Australia grapples with crypto doubts from officials, the US is pivoting in the opposite direction. Newly elected US President Donald Trump has pledged to make the country the ‘crypto capital of the planet’, with discussions centering on the creation of a strategic Bitcoin reserve to tackle the national debt.

“The increasing interest in Bitcoin and the broader adoption of digital assets signals a global shift in the way we view value and exchange,” Bowler said. “Cryptocurrencies are becoming a legitimate form of value exchange with popularity and purpose beyond our borders. The question is not if, but how, Australia will fully embrace this evolution.”

Despite caution from regulators in Australia, the local market is showing increasing interest in digital assets. Monochrome asset management announced plans to launch Australia’s first Ethereum exchange-traded fund (ETF) on Cboe last month, in a bid to capitalize on rising investor demand.

Bowler sees this as a clear indication that the appetite for crypto among Australians is great.

“Crypto is not a dirty word,” Bowler said. “It represents a fundamental shift in the way we perceive value, ownership and financial transactions.”

By recognizing this shift and promoting open dialogue, the Reserve Bank of Australia and other regulators could position the country to capitalize on blockchain and cryptocurrency technologies, she added.

Edited by Sebastian Sinclair