The $2.4 trillion worth Pension Fund Industry of Australia has expressed its concerns about the $2.5 trillion crypto industry. The pension industry finds the Decentralized industry risky, as one prominent figure from the sphere talked about it.
The chief investment officer of the Spirit Super, a A$27 billion superannuation fund, Ross Barry, during an interview with Bloomberg, said that he finds cryptocurrencies a risky investment due to their highly volatile nature, especially for long-term funds.
He further noted that as the crypto witnesses huge price swings, they are too risky to be a part of the institutional portfolios. He further suggested the pension fund industry wait and study the crypto growth graph till the regulatory bodies clear some clouds around it.
“It’s still volatile, and there are still significant governance risks around things like even down to how do you have custody…I don’t think it’s fit for purpose for superannuation funds.”
Australia Remains Divided on Crypto
Australia seems divided when it comes to the crypto industry. The Pension Fund Industry is not the first institution that doubted the development of crypto.
Recently, as TheCoinRise reported, Tony Richards, the head of the payments policy of the Reserve Bank of Australia (RBA), also expressed his doubts on the legitimacy of the statistics of the number of citizens holding digital assets. This also proves the massive crypto holdings in the country, as a recent survey also revealed that the country’s quarter of crypto investors are buying their Christmas gifts using crypto.
However, the country is split on the usefulness of cryptocurrency, with one side worrying about high risk and the other arguing for exponential growth. The Minister for the Digital Economy, Jane Hume, just spoke at the AFR Super and Wealth Summit, highlighting the growing importance of cryptocurrency, as per the TheCoinRise’s recent coverage.