Reserve Bank of Australia Brushes Away Bitcoin’s Likelihood Of Mainstream Adoption

In detailed document, the Reserve Bank of Australia has brushed away claims of Bitcoin (BTC) and other altcoins playing prominent role in payments. In the document titled ‘Cryptocurrency: Ten Years On,’ the RBA seems to appreciate the past ten years of Bitcoin’s existence while acknowledging that it sees no future in the crypto other than being a unique asset.

The document pinpoints the lack of adoption by public as follows:

“Despite achieving some name recognition, cryptocurrencies are not widely used for payments.”

The document further states “This article examines why Bitcoin is unlikely to become a ubiquitous payment method in Australia, and summarises how subsequent cryptocurrencies have sought to address some of the shortcomings of Bitcoin – such as its volatility and scalability problems.”

Broadly, the Australian government continues to remain largely risk-averse on cryptos while issuing caution to shoppers about likely risks that one may face while towing the path of belligerent tax and data collecting strategy.

Back in April, Australian Tax Office (ATO), which is the country’s tax authority, stated that it will obtain relevant documents from crypto exchanges and perform individual audits, if necessary. In this regard, in early June, there were news reports that investigators are scrutinizing 12 cross border transactions related to cryptos.

Commenting on illegal use of crypto, ATO deputy commissioner, Will Day said “At the Australian level, there is definitely legitimate use for investment in cryptocurrencies, but we’re also seeing the use of them to facilitate tax crimes.”

The RBA document, however, seems to be an effort to project a pessimist image of the crypto while championing the Aussie as superior alternative to cryptos.

The researchers made the following conclusion:

“As long as the Australian dollar continues to provide a reliable, low-inflation store of value, and the payments industry continues to work on the efficiency, functionality and resilience of the Australian payments system, it is difficult to envisage cryptocurrencies presenting a compelling proposition that would lead to their widespread use in Australia.”