Reserve Bank of Australia Against Bitcoin Regulations

Good news coming from Australia. High staff members from the Australian Central Bank have expressed the banks position on cryptocurrency regulations. Tony Richards and David Emery said that Bitcoin and Cryptocurrencies do not need any regulatory framework, at the moment.

Reserve Bank of Australia Statement

Australian’s Central Bank provided a presentation to the Standing Committee on Tax and Revenue. Tony Richards, Head of Payments Policy Department and David Emery, Senior Manager in the same department, were in charge of the delivery.

The officials mentioned that some Committee members have expressed interest in cryptocurrencies. Indeed, the Australian Parliament decided to eliminate the double taxation on virtual currencies some weeks ago. “There have been substantial increases in the prices of cryptocurrencies like Bitcoin and Ether over the past year. Most of this seems to relate to speculative demand and in particular the use of digital currencies as means of participation in initial Coin Offerings (ICOs),” they commented.

Equally important it is the fact that, regarding the cryptocurrencies, they expressed that regulations may be ineffective. “The distributed and cross-border nature of digital currencies like Bitcoin, means that regulation of the core protocols of these systems is unlikely to be effective”, they have said.

Blockchain Technology Has a Lot of Way to Develop Yet

Some time ago, we have heard Jamie Dimon commenting about Bitcoin and Blockchain technology. While the comments about Bitcoin were not encouraging, the ones about Blockchain were. He said that JP Morgan is working with Blockchain Technology to make transactions faster and reduce the fees involved.

These Australian officers have also commented about Blockchain technology in a positive way. “While the longer-term prospects for private digital currencies are unclear, the Bank has previously noted that the distributed ledger technology and blockchain technologies underlying them have potential for widespread use in the financial sector and many other parts of the economy.”

Some weeks ago, another report from the Australian Central Bank backed Blockchain technology. “One aspect of fin-tech that has been examined closely in the emergence of distributed ledger technology, often referred to as “blockchain” technology. The bank is participating in a working group of the Committee on Payments and market Infrastructures examining FLT and its implications. The working group published an analytical framework for authorities wishing to review and analyse the use of this technology for payments, clearing and settlement.”

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