RBA Governor Michele Bullock dismissed crypto’s role in Australia’s economy, despite Bitcoin nearing $100,000 amid regulatory optimism in the U.S. Industry experts warn this stance could hinder Australia’s global financial competitiveness.
Why RBA Governor Rejects Crypto Role
Michele Bullock, the Governor of the Reserve Bank of Australia (RBA), recently issued a direct critique of cryptocurrency, asserting that digital assets such as Bitcoin have no place in the Australian economy.
“Don’t call it an alternative currency,” Bullock said at the Australian Securities and Investments Commission (ASIC) annual forum on Thursday. “It’s not a currency, it’s not money; it’s being used as some sort of asset class. I don’t really see a role for it in the Australian economy or payments system.”
The governor’s remarks coincide with the world’s largest cryptocurrency’s recent surge to nearly $100,000, which was partially influenced by Donald Trump’s re-election and a potential change in U.S. crypto regulation.
Industry leaders are cautioning that Australia’s position in the global financial arena may be permanently impacted by such a conservative outlook.
“Governor Bullock’s assertion that digital assets like Bitcoin are ‘not money’ but ‘some sort of asset class’ reflects a conventional view that misses the larger, transformative potential of cryptocurrencies and blockchain technology,” Caroline Bowler, CEO of BTC Markets, said in a statement to Decrypt. “I believe a more open-minded approach is needed.”
Bowler further stated that Australia’s failure to adopt crypto-based innovations “endangers” its potential to dominate the global digital economy.
At the forum, ASIC Chair Joe Longo reiterated Bullock’s apprehensions, characterizing the recent increase in Bitcoin prices as a classic illustration of the “bigger fool theory.”
According to a report published by Finder.com.au, nearly 27% of Australians have expressed interest in owning cryptos, despite the skepticism of Australian regulators. They regard them as a long-term investment rather than a purely speculative asset.
The U.S. is making a significant shift in the opposite direction as Australia addresses concerns regarding cryptocurrency from its officials. Donald Trump, the incoming president of the United States, has pledged to establish the nation as the “crypto capital of the world.” The primary focus of these discussions is the establishment of a strategic Bitcoin reserve to address the national debt.
“The increasing interest in Bitcoin and broader adoption of digital assets indicate a global shift in how we view value and exchange,” said Bowler. “Cryptocurrencies are becoming a legitimate form of value exchange with popularity and purpose outside of our borders. The question is not if, but how Australia will fully embrace this evolution.”
The Australian market is demonstrating a growing interest in digital assets, despite regulatory caution. Last month, Monochrome Asset Management disclosed its intention to establish Australia’s inaugural spot Ethereum exchange-traded fund (ETF) on the Cboe in order to capitalize on the increasing demand from investors.
This is a clear indication, according to Bowler, that the appetite for crypto among Australians is robust.
“The term “crypto” is not derogatory,” stated Bowler. “It signifies a significant change in our understanding of financial transactions, ownership, and value.”
She also stated that the Reserve Bank of Australia and other regulators could position the country to capitalize on blockchain and cryptocurrency technologies by acknowledging this transition and promoting open dialogue.
