Digital Assets could potentially transform the lives of Australians and also spell good fortune for the nation by improving the nation’s GDP.
According to a recent report by the Tech Council of Australia (TCA), one of the major technology advocacy groups in the country, and Accenture, a technology consulting firm, the digital asset sector could contribute about $40 billion (AU$60 billion) a year to the nation’s GDP by 2030 with the right regulatory framework in place.
Aside from an improved GDP, the report also outlines a number of other benefits digital assets which include cryptocurrencies, stablecoins, tokens, and central bank digital Currency (CBDC) could potentially deliver to Australians.
As per the projections of the report, consumers could potentially save about $2.7 billion per year or $10 per person should they use digital assets as payments for international transactions. For the 4000 businesses that fail each year owing to cash flow issues, the instant settlement of business transactions will also be beneficial.
Additionally, Australian businesses could also save 200 million hours per year by automating tax compliance and administration and also reduce retail costs by 80%.
The Australian Digital Asset Space
Recall that, 30,000 Australian and 132 companies suffered varying degrees of exposure to the recently collapsed FTX. Australia’s Securities and Investments Commission (ASIC) has since suspended the license of FTX’s Australian arm till May 15 2023 in the wake of the sudden collapse.
As calls for strict crypto regulations continue to mount, the regulator has shown commitment to designing a more robust regulatory framework for digital assets in its region. It had earlier announced a four-year strategic corporate plan that stretches on to 2026 that focuses on digitally enabled misconducts as emerging technology and products changes its financial landscape.
In September, Australian liberal Senator, Andrew Bragg proposed a bill dubbed “Digital Assets (Market Regulations) Bill” to establish a working regulatory system for crypto exchanges, stablecoins, and digital yuan.
Meanwhile, the Reserve Bank of Australia has launched a one-year research program to explore the economic use of the CBDC should it decide to float one.