The reporter said that a principle-based regulatory approach would significantly benefit the Australian economy. Up to $40 billion annually is expected to be released to add to the Aussie GDP. According to the latest report, if it works with the proper regulatory framework, it will automatically add enormous savings and business.
On 29 NOV, the tech council of Australia (TCA), an advocacy group of the country’s technology industry, a report was commissioned about the digital assets of Australia. In the report, it was explained that the growth of digital assets in Australia has several benefits. They also state that;
The growth of digital assets can transform our lives; it will also offer significant cost and time saving to individuals and their businesses.
The report also estimated that if you use digital assets, including cryptocurrency, stablecoin, tokens, or central bank digital currency, in 2030, there will be about an 80% reduction in retail payment costs. Additionally, it will also save 200 million hours per year of Australian businesses, and it will be done by automating tax compliance and administration. Further 400,000 hours will be held, spending on making documents for business loans.
Moreover, the report also pointed out that if the Australian economy starts to use digital assets for international transactions, the consumer will have potential savings of $2.7 billion or $107 per person. While the report suggested that if there is an instant settlement in a business transaction, it will be beneficial for those 4000 businesses which fail each year due to cash flow.
The decentralized autonomous organization is referred to in a report that they can build public trust by making decisions. In their conclusion, they should make transactions and procedures automated and transparent. Apart from that, all the organization members should be given equal rights through the insurance of utility tokens.
The report also asked to clarify the legal status of DAOs, which will also include the liability implications of their members and participants.
Although the report estimated that if CBDC is introduced through digital assets, you can facilitate 100% of payments. The statement was stated after pointing towards the countries like e-krona in Sweden there is a rapid uptake of CBDs.
On September 26, a white paper report was sent by Australia’s central bank, stating the detailed issuance of the Australian CBDC, also called eAUD. This Australian CBDC will be issued as the liability for RBA. This pilot project is set to be fulfilled in 2023.
The report’s primary purpose was to help the government regulate the sector to enable innovation, but the consumer should also be protected. Hence the information follows the promise from Treasurer Jim Chalmers, an Australian spokesperson who was promoted by the downfall of the FTX. All the regulations are predicted to come in 2023, but the main aim should be protecting investors while promoting innovations.
A report was out by the Australian Financial Review (AFR) on November 14 that about 132 companies and 30,000 Australian investors have their funds locked up with the FTX.