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Cryptocurrencies do not pose a threat to the dollar
According to a Reserve Bank official, cryptocurrencies pose no threat to the Australian dollar or the central bank's operations.
Tony Richards, the RBA's head of payments policy, has similarly questioned the extent to which cryptocurrencies are kept in Australia, but admits to holding his own cryptocurrency wallet.
He told a Thursday online conference that while cryptocurrencies have garnered widespread attention, they are not commonly used in Australia.
"I do not believe they constitute a threat to the Australian currency, our monetary sovereignty, or the Reserve Bank's ability to conduct monetary policy," Dr Richards told the Australian Corporate Treasury Association.
"I don't see shops publishing prices in cryptocurrencies, businesses issuing annual reports in cryptocurrencies, or a large number of people requesting payment in cryptocurrencies."
He said, however, that a diverse variety of investors - from individuals to hedge funds - feel cryptocurrencies have an important role to play.
"At the same time, a sizable portion of the global official sector remains sceptical about bitcoin market movements," Dr Richards stated.
He noted that the recent cryptocurrency bubble is best exemplified by the fact that Dogecoin - "a cryptocurrency that was created as a joke in late 2013" - had an inferred market value of up to $US88 billion in June of this year.
Although it has now decreased to roughly $US31 billion, it remains the ninth largest cryptocurrency in terms of market value.
"While cryptocurrencies have undoubtedly attracted the interest of many, no doubt aided by influencers and celebrity tweets," Dr Richards said.
According to him, some surveys indicate that almost 20% of the Australian population owns cryptocurrencies, while another indicates that 5% of the nation owns Dogecoin alone.
However, he deemed such conclusions improbable because online surveys omit significant sectors of the population, most notably elderly adults, those who live in rural areas, and those who do not use the internet on a regular basis.
However, after raising concerns about the widespread use of cryptocurrencies, Dr Richards - who is retiring from the RBA at the end of the year - admitted that he had owned a bitcoin wallet since June 2014.
"After all, a significant portion of my job is to attempt to comprehend novel payment instruments and technology," he explained.
He believes there are possible scenarios in which a variety of things might combine to dramatically undermine the current cryptocurrency fervour.
This includes households becoming less affected by fads and more receptive to regulator warnings about the dangers of investing in something with "no issuer, no backing, and highly unpredictable value."
He warned that cryptocurrency "mining" consumes a significant amount of energy and may garner increased attention from governments and policymakers.
Additionally, a greater emphasis may be placed on their potential use in assisting financial crime and the black economy.
He informed the conference that the RBA's work on the future of payments will be a top priority in the coming years as part of its mission to ensure the public has access to safe forms of money.
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By Crypto PiratesAccording to a Reserve Bank official, cryptocurrencies pose no threat to the Australian dollar or the central bank's operations.
Tony Richards, the RBA's head of payments policy, has similarly questioned the extent to which cryptocurrencies are kept in Australia, but admits to holding his own cryptocurrency wallet.
He told a Thursday online conference that while cryptocurrencies have garnered widespread attention, they are not commonly used in Australia.
"I do not believe they constitute a threat to the Australian currency, our monetary sovereignty, or the Reserve Bank's ability to conduct monetary policy," Dr Richards told the Australian Corporate Treasury Association.
"I don't see shops publishing prices in cryptocurrencies, businesses issuing annual reports in cryptocurrencies, or a large number of people requesting payment in cryptocurrencies."
He said, however, that a diverse variety of investors - from individuals to hedge funds - feel cryptocurrencies have an important role to play.
"At the same time, a sizable portion of the global official sector remains sceptical about bitcoin market movements," Dr Richards stated.
He noted that the recent cryptocurrency bubble is best exemplified by the fact that Dogecoin - "a cryptocurrency that was created as a joke in late 2013" - had an inferred market value of up to $US88 billion in June of this year.
Although it has now decreased to roughly $US31 billion, it remains the ninth largest cryptocurrency in terms of market value.
"While cryptocurrencies have undoubtedly attracted the interest of many, no doubt aided by influencers and celebrity tweets," Dr Richards said.
According to him, some surveys indicate that almost 20% of the Australian population owns cryptocurrencies, while another indicates that 5% of the nation owns Dogecoin alone.
However, he deemed such conclusions improbable because online surveys omit significant sectors of the population, most notably elderly adults, those who live in rural areas, and those who do not use the internet on a regular basis.
However, after raising concerns about the widespread use of cryptocurrencies, Dr Richards - who is retiring from the RBA at the end of the year - admitted that he had owned a bitcoin wallet since June 2014.
"After all, a significant portion of my job is to attempt to comprehend novel payment instruments and technology," he explained.
He believes there are possible scenarios in which a variety of things might combine to dramatically undermine the current cryptocurrency fervour.
This includes households becoming less affected by fads and more receptive to regulator warnings about the dangers of investing in something with "no issuer, no backing, and highly unpredictable value."
He warned that cryptocurrency "mining" consumes a significant amount of energy and may garner increased attention from governments and policymakers.
Additionally, a greater emphasis may be placed on their potential use in assisting financial crime and the black economy.
He informed the conference that the RBA's work on the future of payments will be a top priority in the coming years as part of its mission to ensure the public has access to safe forms of money.
Support us!