australian government cryptocurrency

Australian Government Cryptocurrency | Path to a State-Backed Digital Currency

Plans to Create an Australian Government Cryptocurrency

An Australian Government Cryptocurrency. Australia’s Reserve bank reported that they had been examining cryptocurrencies and could create a virtual currency backed or based on the Australian dollar. It could be argued that counterfeit versions of this crypto could be created. However, difficult to copy intrinsic features and signature properties could be incorporated into its design to prevent this type of fraud.

Estonia and Lebanon have also been planning to develop their own versions of digital currencies. Even Canada has worked on its own digital currency.  A few months ago, Japan’s Mizuho Financial Group and Japan Post Bank announced that they wanted to launch Japan’s own virtual currency right around the time of the 2020 Tokyo Olympics. Dubai, a popular tourist destination and business hub in the Middle East, has issued its own state cryptocurrency. It’s quite possible that these developments have influenced Australia into thinking about implementing its own digital currency. For now, Australia has shelved its plans citing concerns that it could negatively affect Australian banks. This might be a temporary thing because many Australian startups have been asking the Australian government to consider their proposals regarding a state-backed cryptocurrency.

Australian Startups Focusing on Cryptocurrency

The Australian government had been reviewing proposals by fintech startups advocating the necessity of a government-backed cryptocurrency. According to FinTech Australia chief executive, Danielle Szetho, a state-backed cryptocurrency could increase people’s trust and confidence in using cryptocurrencies. FlashFX, an Australian startup company based in Sydney, was among one of the startups that had expressed interest in working on a cryptocurrency endorsed by the Australian government. Recently, FlashFX acquired a financial services license which would allow it to make overseas money transfers by using blockchain technology.

Cryptocurrencies have been rising in popularity in Australia. CoinJar, a reputable cryptocurrency exchange based in Melbourne, has grown rapidly since its inception in 2013. It has accumulated more than 70,000 customers and has helped them successfully complete transactions now totaling more than $100 million. Power Ledger, which has the distinction of being Australia’s very first startup to generate funds via an ICO, leverages blockchain technology to help people exchange renewable energy assets. AgriDigital is another promising Australian startup that uses blockchain technology to make agricultural supply chains more effective.

Although these startups have been using blockchain technology to conduct their operations, they’re still processing payments using traditional fiat currencies. This might be due to a lack of trust and questions over the stability of cryptocurrencies. Perhaps this is why AgriDigital is also among one of the companies that have approached the Australian government about helping it issue a state-backed cryptocurrency.

Conclusion

Despite a recent market crash, bitcoin and cryptocurrencies have had a sensational year as their values increased exponentially. A very large number of people firmly believe in the technology on which cryptocurrencies are based. The Australian government, along with the governments of other countries around the globe, will not be able to ignore or suppress the booming crypto-market. China tried, this year, to curb crypto activity by banning centralized crypto exchanges and ICOs, but the people found ways to bypass state-imposed regulations.