Up to USD 40 billion a year (A$60 billion) could be added to Australia’s national GDP with the right regulatory framework, and could deliver huge cost savings for consumers and businessesaccording to a new report.
The November 29 report on digital assets in Australia was commissioned by the Technology Council of Australia (TCA), one of the defense groups of the country’s technology industry, and written by the technology consulting company Accenture, in which Here are a number of potential benefits that could be brought by the growth of the digital asset sector in Australia:
“Digital assets (DA) have the potential to transform our lives by offering significant time and cost savings to individuals and businesses.”
The report estimates that digital assets – such as cryptocurrencies, stablecoins, tokens and central bank digital currencies (CBDCs) – could lead to an “80% reduction in the costs of retail payments by 2030”, saving Australian businesses spend 200 million hours a year automating tax compliance and administration, and another 400,000 hours preparing business loan documents.
It also points to potential savings for consumers of almost USD 2.7 billion a year (A$4 billion), or USD 107 (A$160) per person, if they use digital assets for international transactions.while also suggesting that an instant settlement of business transactions could be hugely beneficial to the 4,000 companies that fail each year due to liquidity problems.
The report refers to Decentralized Autonomous Organizations (DAOs) as a way to build public trust by making decisions, transactions, and procedures “automated and transparent,” and that all members of the organization have the same rights through the issuance of utility tokens.
It is also mentioned that To fully unlock the potential of DAOs, the government needs to clarify their legal status, including the liability implications for their members after DAO Ooki participants were indicted by US regulators.
The report estimates that “up to 100% of payments” could be facilitated by digital assets if a retail CBDC is introduced, noting the rapid uptake of retail CBDCs in other countries, such as e-krona in Sweden.
On September 26, The Reserve Bank of Australia (RBA) – Australia’s central bank – has published a white paper detailing the minting and issuance of an Australian CBDC, called eAUD, to be issued as a liability to the RBA. The pilot project is scheduled to start in 2023.
The report aims to help the government regulate the sector in a way that allows innovation while protecting consumers, and it follows the promise of a spokesman for the Australian Treasurer, Jim Chalmers -motivated by the fall of the FTX- that in 2023 a regulation would arrive aimed at protecting investors while continuing to promote innovation.
According to a November 14 report in the Australian Financial Review (AFR), 30,000 Australian investors and 132 companies have funds locked up on FTX.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.