Financial services minister Jane Hume believes that governments around the world are wrong to be worried about cryptocurrencies. She says that cryptocurrency is “not a fad,” but rather a valid financial tool that can play many parts in the future of the global economy.
Jane Hume Is Confident in Crypto
At a summit review in Australia just over a week ago, Hume said that cryptocurrency wasn’t likely to disappear “anytime soon.” She offered the following message to government regulators everywhere that have expressed concern about where the space will go and the potential risks its poses:
So as an industry, and as a government, we need to acknowledge this is not a fad. We should tread cautiously, but not fearfully. Don’t be the person who thought the iPhone would never take off because people would prefer to have their music and telephone on separate devices. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream, and don’t be the person who argued that email was a passing fad.
Her words come only days after similar comments were made by Tony Richards, the head of the Reserve Bank of Australia. He explained to the Australian Corporate Treasury Association that there were likely to be events and scenarios down the line that crypto could handle better than standard or traditional financial tools. However, he also felt that this could lead to a fall in crypto prices. He said:
Households might be less influenced by fads and a fear of missing out and might start to pay more attention to the warnings of securities regulators and consumer protection agencies in many countries about the risks of investing in something with no issuer, no backing, and highly uncertain value.
One of the scenarios, he says, that could lead to a heavy crash in crypto prices, is if stable currencies were to fall under heavy regulation. If banks were to take such action or if they were to issue their own currencies (often referred to as central bank distributed currencies or CBDCs), this could ultimately change how people view mainstream digital assets like BTC or ETH.
We Need to Get More Involved!
He also expressed other worries about the alleged energy use of crypto and how it is potentially hurting the planet and about anonymous cryptocurrencies, which purportedly create outlets for individuals to behave maliciously. Hume, by contrast, was quick to dismiss many of these worries, and is more concerned about Australia not jumping aboard the crypto train and getting left behind. She comments:
Decentralized finance underpinned by blockchain technology will present incredible opportunities. Australia mustn’t be left behind by fear of the unknown.
According to a recent Senate report regarding financial technology, approximately 17 percent of citizens in Australia hold digital currencies.