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HomeCryptocurrencyReserve Bank warns Aussies over punting on 'fad driven' cryptocurrencies

Reserve Bank warns Aussies over punting on ‘fad driven’ cryptocurrencies

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Reserve Bank warns Aussies over punting on ‘trend driven’ cryptocurrencies

The Reserve Bank of Australia (RBA) has actually warned Aussie financiers about hypothesizing on digital properties as it casts doubt over the whole crypto sector.

During a Nov. 18 address to the Australian Corporate Treasury Association, the RBA’s head of payments policy Tony Richards offered an overview on dispersed journal tech, crypto possessions, stablecoins, and central bank digital currencies (CBDCs).

In his speech, Richards raised questions over crypto’s validity and growth in 2021 as he took goal at the amount of capital invested into memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB):

“The current boom in this area is perhaps best highlighted by the fact that Dogecoin, a cryptocurrency that was started as a joke in late 2013, had an implied market capitalization as high as US$ 88 billion in June this year.”

“And the Shiba Inu token, which appears to be similarly complimentary of any beneficial function, is currently the ninth-largest cryptocurrency, with a market capitalization of around US$ 26 billion,” he added.

Richards also asserted that public attention caught by crypto in 2021 was “no doubt sustained by influencers and celeb tweets,” as he refuted the reported scope of how prevalent crypto adoption actually remains in the nation.

“Some studies have actually claimed that around 20 percent of the Australian population hold cryptocurrencies, and one declared that Dogecoin alone was held by 5 percent of Australians. I must say that I find these data somewhat implausible,” he said.Richards outlined three situations in which the “existing speculative need could begin to reverse “in crypto that would essentially leave digital properties with very little usage cases in his opinion.

To start with, he argued that investors may soon “be less affected by fads” and FOMO and instead pay more attention to warnings of regulators and policymakers.

Second of all, he said that governments around the world might intend to punish energy-intensive proof-of-work-based cryptocurrencies such as Bitcoin (BTC), and finally he said the tax authorities might aim to remove privacy to secure down on financial criminal offense.

Related: Aussie crypto business keen to welcome guidelines, says senator

Discussing Richards’ address, Steve Vallas the CEO of Blockchain Australia refuted the speculative-focused arguments versus the whole sector, telling Cointelegraph that:

“Some regulators maintain an unhelpful and narrow concentrate on the speculative aspects of the sector. That lens misses the impressive facilities build that has actually occurred in recent years.”

Crypto-friendly Senator Andrew Bragg, who is among the essential political leaders behind the push to introduce robust crypto guidelines in Australia echoed comparable beliefs, keeping in mind that “the RBA is short-sighted on cryptocurrency. The utility and value to the economy of the innovation is massive.”

Published at Fri, 19 Nov 2021 05:00:14 +0000

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