More Aussie Crypto Traders Profiting, Country Moving to Largest Reform of Payments Systems
Nearly 90% of crypto owners in Australia have either profited from trading in 2021, or broke even, with the number of women in the crypto-owning group doubling compared to 2020, according to a recent survey released by Aussie crypto exchange Independent Reserve.
To be more specific, a robust 89% of Australian crypto owners made money or have broken even this year in their trading activities, up from 78% in 2020.
"In 2021, 59.6% of people reported making money with their crypto investments, up from 42.7% in 2020," the report that presents the results of the survey said.
On the other hand, the age groups "most likely to have lost money on crypto in 2021 were the 65+ bracket (31.3%) and 55-64s (21.4%), but only 5.9% of 18-24-year-olds posted negative investment results."
The study also reveals that the proportion of women who own crypto has doubled from 10.1% in 2020 to 20% this year.
The rising ranks of female crypto owners reflect a "greater adoption across a more diverse cross-section of the Australian community and a general move to more mainstream recognition of digital assets as an investment vehicle," according to the report.
Additionally, the "percentage of female Bitcoin owners rose from 8.3% to 14.8%."
Meanwhile, ethereum (ETH) awareness is rapidly increasing among Australians, up from 23.5% last year to 36.7% in 2021, the study found.
The 18-to-24-year-old age group was the most familiar with ETH, and also saw a strong rise in awareness of XRP, which has increased from 13.5% in 2020 to 20.3% this year.
Per Edan Yago, the lead contributor to the Bitcoin decentralized finance (DeFi) protocol Sovryn,
"It is a question of time before all payments and financial transactions are digitised on public ledgers. This shift will unlock huge opportunities for cost reduction, innovation and financial inclusivity. At the same time, it will relegate the idea of local payments systems and local regulation to a thing of the past. The future of money and finance is borderless and digital."
The Independent Reserve Cryptocurrency Index survey was carried out by local online market research specialist PureProfile which collected answers from 2,000 Australian residents.
Australia 'speaking out' on crypto regulation
Meanwhile, the Australian government is planning to legislate what could become the largest reform of its payments systems in decades, Federal Treasurer Josh Frydenberg said in an interview with 7NEWS Australia.
Frydenberg said the aim was to take "this area out of the shadows and bring[...] it into a considered regulatory framework" as the government wants businesses that are buying and selling crypto to be properly licensed for "a greater certainty and security to those people who are transacting in that area."
The treasurer said the government was also working with the Reserve Bank of Australia, the country’s central bank, to "look into the feasibility" of introducing a central bank digital currency (CBDC).
According to Mikkel Morch, Executive Director at digital assets hedge fund ARK36, “the scope of the regulation outlined by the Australian Treasurer doesn't seem to be overly restrictive,” which makes it clear that the regulators “recognise the immense economic and innovation potential of crypto and don't want to stifle it.”
That said, the push for CBDCs would suggests that financial regulators “may want to use their own digital money systems to outcompete non-governmental ones, including cryptocurrencies,” said Morch in an email, adding:
“This competition will be an interesting dynamic to watch in the next few years but one thing is certain - major governments are now betting on the idea that crypto is the future of money.”
Similarly, Ruud Feltkamp, CEO of cloud-based automated crypto trading bot Cryptohopper, argued that "(reasonable) regulation is good for the market, and it's positive to see Australia speak out." Crypto will be impossible to stop, and the government need to understand that, given that if they don't cooperate, they'll "miss the boat" and the large crypto companies may relocate elsewhere.
"I hope nations understand that now is the time to do something about the status quo. That gives you the potential to profile yourself as a new financial hub, with all the associated benefits," said Feltkamp.
(Starts at 3:00)
- Check These 12 Crypto Regulation Recommendations By Aussie Senate Committee
- Aussie Senator Says Crypto, Blockchain Legislation May Be Passed Next Year
- Another Major Bank to Begin Offering Bitcoin, Ether & Altcoin Services
- Australian Crypto-Focused ETF Hits Record, Spot-Based BTC, ETH ETFs Expected
- Aussie Banks Reject Crypto Industry’s 'Bullying' Allegations
- Aussie Crypto Exchange Sinks Amid Complaints, Missing Fund Allegations