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With the prior involvement of Australia with blockchain and cryptocurrencies, recommendations and probable impact of the formulated fintech and regtech industries will only complement the growth of the crypto sphere.
The place of blockchain technology as a tool to drive the growth of Fintech and Regtechs has been highlighted in Australia’s Senate Committee report. As gleaned from the page of Senator Andrew Bragg’s, the Chair of the Senate Select Committee on Financial Technology and Regulatory Technology, an interim report containing 32 recommendations to revamp regulations bordering on Fintechs and Regtechs have been proposed.
This interim report came at a time when the coronavirus has caused the Australian economy into its first recession in 30 years. With the coming of the coronavirus pandemic, the Australian government has been stretched, rolling out about AUS$320 billion to help ease the job losses and to stabilize worker’s wages.
“As Australia faces its first recession in 30 years, it’s clear we need more jobs and the only way to do that is to embrace technology and become globally competitive,” Senator Bragg said. He added:
“It is my hope this interim report can be seen as a series of quick wins: new jobs and more choice.”
Blockchain in Australia: Post COVID-19
The interim report details key recommendations showing how blockchain technology can best be harnessed in helping the Australian economy to bounce back post-COVID-19.
Of the recommendations, the senator demands the need to seek further clarification around eligibility for tax incentives to ensure genuine software creation by Australian startups is reliably supported.
As highlighted by Cointelegraph, there are dozens of references to blockchain and distributed ledger technology and the report cites submissions to the committee that blockchain’s potential is “estimated at $175 billion annually within five years and $3 trillion by 2030”. It quoted Piper Alderman partner Michael Bacina as saying blockchain’s use cases would grow exponentially across the financial and regulatory sectors:
“Most fintech and regtech projects will either be built predominantly on distributed ledger technology or blockchain or heavily using that within the next 10 years.”
With the proper policy formulations, Senator Bragg believes Australia will “continue developing as a leading Asia-Pacific FinTech nation especially as Hong Kong declines as a financial center.”
Aussie Not Alien to Blockchain Innovations
The senate’s interim report is not an ushering of the Australian government and economy into the world of blockchain technology as the country has had advances in blockchain innovations in times past.
Back in 2018, Coinspeaker reported the readiness of Australia to make money smart using blockchain. This claim came after The Commonwealth Scientific and Industrial Research Organization’s (CSIRO) Data61 division and Commonwealth Bank of Australia (CBA) has announced that they have successfully trialed a new type of blockchain-powered smart money. saying that it could be used to help manage insurance payouts, budgeting, and the management of trusts and charities in Australia.
The foray of blockchain technology in Australia has also seen the influx of cryptocurrency exchanges while private institutions including Australia`s top three ranked banks experiment the latest bank-guarantee system for consumers that depends on a shared database, purporting the project would usher in the first use of blockchain technology to process retail financing in the world
With the prior involvement of Australia with blockchain and cryptocurrencies, recommendations and probable impact of the formulated fintech and regtech industries will only complement the growth the Aussie market has recorded in the crypto sphere.