At the Australian Securities and Investments Commission (ASIC) forum on Monday, Reserve Bank of Australia (RBA) Governor Michele Bullock questioned the relevance of Bitcoin in Australia’s economy.
Bullock dismissed Bitcoin and other digital assets, arguing that they are unsuitable for Australia’s economy or its payment systems.
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Australia's RBA Governor Michele Bullock has dismissed Bitcoin as “not a currency, not money” in a recent ASIC forum, claiming it holds no role in the nation’s economy.— Bullish Times (@BullishTimes_) November 18, 2024
“Don’t call it an alternative currency,” Bullock firmly stated. “It’s not a currency, it’s not money; it’s being used as some sort of asset class. I don’t really see a role for it in the Australian economy or payments system.”
Bullock’s remarks come as Bitcoin surges to over $90,000, driven by Donald Trump’s re-election and growing institutional interest.
Meanwhile, ASIC Chair Joe Longo echoed Bullock’s position, describing Bitcoin’s rise as an example of the “bigger fool theory,” pointing to speculative behavior rather than practical utility.
Michele Bullock’s Critique of Digital Assets in Australia’s Economy
Industry leaders have criticized the RBA’s cautious approach to crypto adoption, warning that Governor Michele Bullock’s stance could result in missed opportunities for Australia.
Caroline Bowler, CEO of BTC Markets, argued that limiting digital asset use could hinder Australia’s global competitiveness.
“Governor Bullock’s assertion that digital assets like Bitcoin are ‘not money’ but ‘some sort of asset class’ reflects a conventional view that misses the larger, transformative potential of cryptocurrencies and blockchain technology,” Bowler said.
She emphasized the importance of embracing blockchain technology, noting that reluctance to innovate in this area risks leaving Australia behind in the global race for digital leadership.
A Finder.com.au report revealed that nearly 27% of Australians are interested in owning digital assets, seeing them as long-term investments instead of speculative tools.
Growing Interest in Digital Assets in Australia
Despite regulatory caution, crypto adoption in Australia is gaining traction.
Perth-based fund manager DigitalX is gaining attention with its Bitcoin Fund and spot Bitcoin ETF.
The Bitcoin Fund has posted a 99% annual gain, outperforming many global rivals.
DigitalX’s spot Bitcoin ETF, listed on the Australian Securities Exchange (ASX), distinguishes itself by operating within Australia’s regulatory framework.
This shields investors from U.S. political uncertainties affecting similar funds abroad.
Lisa Wade, DigitalX CEO, stated that the ETF provides direct access to Bitcoin “via a regulated and liquid fund structure,” making it appealing to local investors.
Meanwhile, Monochrome Asset Management launched Australia’s first spot in the Ethereum ETF.
Monochrome Asset Management has introduced Australia's first exchange-traded fund (ETF), which directly holds Ether.#Australia #ETFshttps://t.co/iMiJDhrdDA
— Cryptonews.com (@cryptonews) October 15, 2024
While Australia remains hesitant, other nations are advancing their crypto adoption strategies.
In the U.S., President-elect Donald Trump has promised to transform the country into the “crypto capital of the planet,” proposing a strategic Bitcoin reserve to address the national debt.
In other news, Crypto.com has acquired Fintek Securities, a licensed brokerage firm, as a strategic move to strengthen its presence in the Australian market.
Crypto.com will offer a range of traditional financial products such as derivatives, deposit products, securities, and foreign exchange to Australian users.
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