Australia May Fully Legalize Bitcoin

Local sources in Australia including the Sydney Morning Herald report that Labor and Coalition senators have officially requested that the Reserve Bank of Australia legalize and adopt bitcoin as an official form of currency.

Bitcoin Down Under

Labor senator Sam Dastyari and Liberal senator Jane Hume announced that their bipartisan push had crossed the political divide and awaits final approval from the country’s central bank. The two senators also told the Reserve Bank of Australia that the failure to acknowledge bitcoin as an official form of currency could severely damage the competitiveness of the Australian financial services industry.

Senator Dastyari stated:

“The question for Australia is are we going to follow or are we going to lead. We need to find a bipartisan way of doing this. We can’t compete with our Asian neighbours when it comes to producing cheap goods and services anymore. We can compete when it comes to financial services but that is going to mean big, bold decisions. This will be a revolutionary leap for the Reserve Bank and for Australian financial institutions, what we want to do here in Parliament is to create the political environment to allow that leap [for an Australian bitcoin blockchain] to occur.”

For the most part, Senator Dastyari’s statement is accurate. In 2015, when major banks abruptly closed the bank accounts of local bitcoin and cryptocurrency startups and service providers, most companies within the Australian bitcoin and blockchain sector left the country for more regulatory-friendly countries like Singapore, Japan, South Korea and Hong Kong.

At the time, Australian Digital Currency Commerce Association chairman Ron Tucker explained, “Our members have said the banks have been remarkably unwilling to provide explanations for ceasing to provide services for ADCCA members. Our members, some of whom may end up being partners with or competitors to the banks in the future, are currently at the mercy of established financial institutions.”

Since then, Australia’s bitcoin, blockchain and fintech industries have struggled to grow at a consistent rate while Singapore, Hong Kong and other Asian countries have continued demonstrating exponential growth. Indeed, many Asian countries have developed leading cryptocurrency exchange markets and industries with practical and efficient regulations.

Earlier this year, in an attempt to recover its fintech and bitcoin industries, the Australian government announced the elimination of double taxation on bitcoin. It also noted that bitcoin will be considered to be a legal commodity and settlement network. In its official 2017-2018 budget report, the Australian government vowed to create an improved ecosystem for bitcoin businesses and to treat bitcoin just like other forms of money.

“The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes,” read the report.

In the upcoming months, once the bipartisan proposal is approved by the government, bitcoin will likely be recognized as an official currency in Australia.

 

  • Aaron Michael

    So now I wonder how long will it take for the United States to come to the same conclusion or will we once again be too busy bombing some other country? Looks like Venezuela this time around. good grief!

  • Alex

    it is funny how things work. US reserve currency =world currency with a whole lot of perks is in danger. USA known for protecting it’s interests and there are quite few examples of what happened to the leaders/countries who tried to go against: Saddam=threatened to sell oil for euros=911=no Saddam.
    Gaddafi threatened to mint golden dinar ands sell oil for it=Arab Spring=no Gaddafi. Now USD is overloaded with debt as well as rest of the world’s fiat junk, they missed out on recognition of real danger of BTC to any fiat on early stage, now it matured (or let’s say gained some weight, noticed by big guys) and:
    1. (oh, snap!) adopted by one by ALLIES not some remote dictatorship that can be strangled singlehandedly without UN capable to do anything real except clashing with disapproval by Security Council=nothing, but actual countries that matters.
    2. BTC looks like a progressive breakout in financial relations, more progressive then any fiat junk ever be, so to ban it is to inevitably lose your leadership in technological race.
    3. Looks like Russia (who is officially recognized as enemy of US now, considering that only neighbors in the list are N Korea and Iran) decided to take a path of retaliation (and this time they chose right target: USD itself) by employing hell of the power into BTC mining. The ones who thinks that Russia is any kind of BTC liberator don’t be fooled they even more control freaks then USA, but by retaliation they help BTC to get even bigger that in the end will collapse their own junk fiat they just don’t see it yet, they think they can “categorize and oversee” it.
    4. Australia who is losing production race to China have nothing else to do but press for BTC legalization, as they have nothing else to offer.(And there will be more, much more following their steps)
    5. In this dilemma for US with approaching world financial crisis and USD potentially losing it’s throne they really have only 2 options: to embrace BTC (which most likely will lead to USD collapse) or to protect USD (most likely will lead to world war)

    • FakaLakaDingDong

      That is an astute distillation of the ultimate binary fork in the road ahead.

      However, Trump doesn’t seem to like big government. He seems to want to decentralize powers of the Federal government back to the individual States.

      Now… that is an extraordinary signal that Trump could enable the demise of the dollar if he sees Bitcoin as a means to eliminate (over-night) the $20tn debt hanging over the US economy.

      This thing could come down to the wire…

      • Alex

        Only Rockfeller vs Rotchild clans really have power to do anything disastrous to world economy. Trump is a child with nuclear suitcase in a sandbox.