The document recognizes the growth of the digital asset; however, it questions said growth and maintains that it remains a risk
In the English language, mainstream is a word that means that something will not become normal or conventional. This means that it will not become something common within everyday tasks. This is how the Reserve Bank of Australia described Bitcoin (BTC) in a report recently published.
The publication highlights that although Bitcoin has had a great boom and recognition in recent years, it will not achieve a level of real acceptance among citizens of the financial world. “Despite achieving some name recognition, cryptocurrencies are not widely used for payments”, the banking institution hold.
The report published by the institution recognizes that Bitcoin and other cryptocurrencies have managed to be a great revelation for the world of finance. The organization also says that in the last decade, cryptoactives have had an important participation in some markets. It also exposes the existence of Bitcoin as the most booming asset in the decade. However, despite these statements, the document says that the future of cryptocurrencies will not be entirely profitable and will not succeed in the near future.
In this way, the document called: “cryptocurrencies: Ten years on” mentions the aspects that have led to this conclusion. On this document, the bank states that “This article examines why Bitcoin is unlikely to become a ubiquitous payment method in Australia, and summarizes how subsequent cryptocurrencies have sought to address some of the shortcomings of Bitcoin – such as its volatility and scalability problems”.
The article argues that cryptocurrencies are not safe and defends the Australian dollar as the best alternative to manage user’s finances. Some researchers and experts expose the following idea: “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”.
Hence, this affirms the theory that cryptocurrencies represent an opportunity for economic stability for users who reside in countries where their economy presents problems and crises that are difficult to manage.
The report goes “hand in hand” with the position of the Australian government about the cryptographic industry in general. It insists that there are many risks within that industry if it is adopted as an alternative. In addition, it reinforces its tax collection and data policies.
This leads to a strong surveillance of these operations because it can represent a certain level of illegality and secrecy in that region. At the beginning of June, some 12 international operations were registered in the country that linked cryptocurrencies with an attempt to evade taxes.
“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”, Australian Tax Office (ATO) Deputy Commissioner, Will Day, says.
By María Rodríguez