Digital wallet and cryptocurrency regulations receiving regular currency facility in Australia
The Australian government is setting up new rules for digital wallets and cryptocurrencies as they are gaining more and more quota in the financial world. According to Treasurer Josh Frydenberg, the country has not been updated with the new regulations for more than 25 years.
Every day the Australian people make around AU$650 billion in non-cash payments. To tackle the digitalisation, digital wallets, cryptocurrencies and the buy now, pay later (BNPL) scheme is necessary.
The reform warned what would happen if the country didn’t cope with a digital wallet or cryptocurrency trends and how much they’d be missing out. Currently, the largest crypto holders and transition partners are owned or backed by silicon valley companies.
If moves are not taken in time, the country may miss out on the upcoming financial trend. Australia has always been a centre point for trendy tactics and procedures. Still, as the financial capabilities remain unchanged for more than two decades, the authorities finally are looking into the matter.
Overseeing payments policy and addressing future gaps in payment requires a regulatory framework. Frydenberg talked about the given pace of change ‘if we don’t reform the current framework, it will be Silicon Valley that determines the future of our payments system.
Within mid-2022, the government is looking at longer-term plans to cope with digital wallets, cryptocurrency and buy now, pay later. They will provide additional power to the payment system and the regular payment system.
Today, some of the most prominent digital financial platforms are owned by Silicon Valley. The Australian government is nowhere close to being keen on the idea that other countries will control their economic motives.
The decision is very respectable. Apple pay, PayPal, and Venmo are popular names for digital transactions, but the future holds tremendous value for crypto and the BNPL scheme. With the scheme implemented, the country will push further ahead than many with just one move.
Modernising the payment system with gateways such as crypto will allow citizens much flexibility and a profit for the Treasury in the future. Necessary system legislation is considered for making the payment process engaging under the law put by the Australian Treasury. They will perform similar to Google Pay or Apple Pay.
Frydenberg hopes to make the substantial and complex body of work "that will cement Australia’s position as a global finance and technology hub."
The movement is a futuristic vision to put Australia on the higher tier of the global financial map.
The reserve banks testing CBDCs for international settlements think it will reduce transaction types, cost and improve the current way of payment among individuals.
The licensing framework by Australia will create a cryptocurrency exhibit similarly to the retail central bank digital currency. ACCORDING TO YAHOO FINANCE, the AU$650 billion daily transactions (US$463 billion) is a quarter of a century.
Chief executive of Consumer Action Law Centre, Gerard Brody, said they are now holding ‘significant sums of peoples’ money and investments. Addressing the risk of debt can not be ignored. Significant risk regarding financial stress has always been there and will be there as part of the action.
Currently, the government is carefully watching Google Pay, Apple Pay and WeChat services. These services are widely popular, and offerings have grown tenfold over the past years.
Though these programs were not primarily designed as a payment system, they transformed into one due to the demand of users. Tons of programs and platforms offer sub-option to make or receive payment systems, and the Australian government considers the data. Central Bank of Digital Currency (CDBC) is also putting up taxation measures on the digital economy.