By Shelly Melancon (Switzerland)
Despite the growing popularity of cryptocurrency, a lot of people are still missing out on the opportunity of owning one because they are still doubting its authenticity and true purpose, calling it a fad. The Australian finance minister has come to the defence of crypto lovers and rebuked these doubters for calling cryptocurrency a fad.
Speaking at a financial review summit on Monday in the country, the minister Jane Hume, said that Bitcoin and other digital assets were going nowhere, regardless of what doubters say. Hume said that the government needs to recognize that cryptos are not a fad, but there’s a need to tread carefully and not fearfully.
Hume Compares Cryptos to Previous Technologies
During the summit, Hume likened cryptocurrency to the iPhone when it first came out. She said that when the iPhone first started, everyone thought it would never take off because they assumed that they would always have their music and telephone on two different devices.
Hume used another technological innovation: the internet. She advised Australians not to be those who swore that the internet was just for geeks and would never become mainstream. She said the same thing about email when it first emerged, advising people not to be those that argued email was a passing fad.
Also read:Central Bank Issues Stern Warnings to Investors
Hume’s comments came a few days after the country’s central bank advised the Australian Corporate Treasury to be wary of cryptocurrency and the challenges it will pose in the future. Tony Richards, who heads the Payments Policy section of the bank, said that he could foresee some scenarios that could challenge the current zeal surrounding the assets.
He said that the changes could cause a crash in the value of these assets, which stands at $2.6Tn. According to Richards, these changes could be the warnings of regulators and agencies in other countries about the risks involved in investing in cryptos.
Those warnings might steer people away from investing in something that’s highly volatile and with no backing. He mentioned other factors, such as the high energy used in mining virtual currencies, tax bodies and law enforcement agencies focusing on transactions, as what could impact the enthusiasm around cryptocurrencies in the future.
Richards also disclosed that cryptos might crash if solid regulatory frameworks for stablecoins, such as Tether and Binance USD are established. At the moment, all stablecoins are pegged to the dollar, therefore share the same parity value.
Richards opines that if central banks issue stablecoins, it would offer a much safer and efficient transacting experience. However, it will ultimately affect how people will perceive cryptos.
Hume, however, said that the country shouldn’t risk opting out. She opines that decentralized finance with blockchain technology will present numerous opportunities, adding that Australians mustn’t let the fear of the unknown hamper their investment opportunities.
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