Australia considering buying Bitcoin as a reserve asset

in bitcoin •  7 years ago  (edited)

The Australian parliament may soon consider adding Bitcoin to the currency reserve holdings of the Reserve Bank of Australia (RBA). Two senators from different parties (Labor and Liberal) are acknowledging the increasing importance of cryptocurrencies and blockchain technology, have suggested that the RBA hold Bitcoin in reserve to add versatility to Australia’s growing financial services industry.


Liberal Senator Jane Hume and Labor Senator Sam Dastyari have formed the Parliamentary Friends of Blockchain at Parliament House  Photo: Andrew Meares 

Senator  Sam Dastyari  said "the digital currency had now become a serious financial player and Australia risked being left behind if it did not pursue developing its own official currency and blockchain to use on the market".

Liberal Senator Jane Hume said "The opportunities for government, academia, and the private sector are enormous”

What are the implication for Bitcoin? 

If Australia approves this proposal I believe other countries will start to do the same thing and this will start a race who has more bitcoin in their reserve. More on this on my upcoming in depth analyses of the price of Bitcoin to the “moon”. 
Japan and Russia have announced plans to invest hundreds of millions of dollars into Bitcoin mining. We might see a domino effect and a race to accumulate more bitcoin will start. Also unconfirmed rumors are that China will regulate crypto exchanges because they don't want to be left behind. If all of thisturns to be true than we are looking at 500%+ return for Bitcoin.

Feel free to comment below with comments or criticisms!

Please do not consider anything in this post to be investment advice, and  always do your own due diligence and research.    


Sources: http://www.smh.com.au/federal-politics/political-news/bipartisan-push-for-the-reserve-bank-to-back-australian-bitcoin-20170807-gxqrm7.html


Images: fairfaxstatic.com.au/content/dam/images/g/x/q/y/w/0/image.related.articleLeadwide.620x349.gxqrm7.png/1502099432607.jpg

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Interesting but can't see it happening this government has no idea how to implement anything worst I've ever seen in my time

I dont know that because I am not from Australia but the fact that they are discussing it on the political level is a positive development.

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This is a very good and timely post. Governments are beginning to realize the long-term risks associated with using fiat currencies as a storage of wealth. As you have indicated, I also think we can expect this trend to continue.

Hi Jaaling. It is early stage now but I believe as soon as the first government will start to buy Bitcoin as a reserve other governments will try to do the same in order not to be left behind and it will become a race. In less than w years bitcoin is going to have another halving and it will become more rare. The scarcity+more adoption+wall street and government will drive the price to the moon. I don't know when this is going to happen but there is a good chance it will happen in the next couple of years.

Based on what I've been reading from the experts on this topic, I think that your assumptions are spot on. The halving of Bitcoin will likely be the main driver in accelerating this process, and this of course will mean a major paradigm shift in the global financial order.

Too early for that, but in a few years could be possible...

I agree. At this point Chinese and Russian central bank are fighting Bitcoin...I dont know what western government will do but you cant ban crypto without due process. It will be interesting how things will unfold in the future.