Josh Frydenberg’s Payments Reforms Promise Australian Jobs and Opportunities in Crypto Economy

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I’m not interested in the price of a particular coin, like bitcoin. I am interested in the economic opportunity of the technology.

Fast forward to today, the narrative has changed dramatically and the potential for Australians is undeniable. Treasurer Josh Frydenberg described the most ambitious payments system reform in 25 years with crypto as the centerpiece. Frydenberg’s plan will make Australia a crypto hub, but it will also protect consumers.

Frydenberg broadly adopted the Senate plan as well as the plans presented by payments law expert Scott Farrell.

An EY report, commissioned by crypto miner Mawson Infrastructure, sets out the very tangible opportunities for Australia if we embrace this reform agenda.

The first important takeaway from the EY report is that 28.8% of Australia owns or is likely to own cryptocurrency. This echoes research from the company FinTech Finder, which found that 17% of Australians own cryptocurrency, with an additional 13% saying they plan to buy cryptocurrency in the next 12 months.

Australia can benefit enormously from this. Adopting this reform agenda, which builds on those implemented in other jurisdictions – from Singapore to the US state of Wyoming – could make Australia a major international hub.

This is part of a transformation of our payment system. As the treasurer said last week, the global crypto-asset market is now worth $ 2 trillion and, combined with the payment policy, has become a major economic lever.

It is not only a question of economy, it is also a question of strategic imperatives. If we don’t have supervision, then it will be under the control of another country.

The benefits to our economy will be significant. Currently, this sector employs 11,600 workers. This modeling predicts that the sector will employ 205,700 workers by 2030, a 17-fold increase.

The sector generates $ 2.06 billion in economic activity. By 2030, we could see this balloon grow to $ 68.4 billion.

For this to happen, we must implement the Frydenberg plan carefully. Our dual guiding principle should be to provide consumers with adequate protection and investors with certainty and confidence.

The new legal framework must have flexibility as a feature, not as a bug. We need to leave an open space for innovation that we have not yet anticipated, but we also need strong safeguards to prevent abuse.

That is why licensing systems, minimum standards and legal recognition can provide sufficient oversight and certainty while allowing the government to adapt to changing circumstances.

The recommendations of the Senate report, if properly implemented, can achieve this balance.

The treasurer has pledged to finalize the consultation on licensing for crypto markets, a custodial regime by mid-2022.

By the end of 2022, the Treasurer will complete the Review of Decentralized Autonomous Organizations – a revolution in corporate law designed to give people big ideas.

At this point, we will have received advice from the Board of Taxation on the appropriate framework for the taxation of these assets.

We have to meet those deadlines and try to speed up if we can. The treasurer has asked me to help implement these reforms. I’ll keep my foot on the accelerator.

If Australia does not act quickly, we will quickly lose ground and see local innovators heading overseas. Over the past month, we have seen DeFi Trovio merge with TCM to form an entity which will be based in Singapore.

Investor Mark Carnegie made similar remarks about setting up a camp in Singapore. What a shame for Australia and Australian workers.

Governments abroad are keeping pace. Singapore remains a market leader, with a comprehensive licensing system for digital asset service providers. Australian companies seek licenses in Singapore and move north.

The United States and the United Kingdom are also at various stages of pursuing their reform agenda.

But the opportunity remains to be seized. Australia has a chance to be a leader in the new economy, instead of scrambling to pick up the leftovers two years from now.

We have a clear policy for this to happen. New choices, lower prices, jobs and investments will pay off. There’s no time to lose.

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