RBA Governor Critiques Crypto Amid Bitcoin’s Global Surge

Reserve Bank of Australia (RBA) Governor Michele Bullock has voiced her skepticism toward cryptocurrencies, stating that Bitcoin and similar assets lack a role in Australia’s economy or payments system. Speaking at the Australian Securities and Investments Commission (ASIC) annual forum on Thursday, Bullock remarked, “Don’t call it an alternative currency. It’s not a currency, it’s not money; it’s being used as some sort of asset class.”

Her comments come as Bitcoin nears a historic $100,000 price mark, buoyed by optimism surrounding U.S. President-elect Donald Trump’s pro-crypto stance and promises of regulatory reform.

Industry Pushback

Michele Bullock’s dismissive stance has sparked criticism from industry leaders who see cryptocurrencies as pivotal to the future of finance. Caroline Bowler, CEO of BTC Markets, said in a statement, “Governor Bullock’s assertion that digital assets like Bitcoin are ‘not money’ reflects a conventional view that misses the transformative potential of cryptocurrencies and blockchain technology.”

Bowler added that Australia’s reluctance to embrace crypto innovations “risks” the country’s ability to lead in the global digital economy.

ASIC Chair Joe Longo echoed Bullock’s skepticism, calling Bitcoin’s recent price surge an example of the “bigger fool theory.”

A Growing Market for Crypto in Australia

Despite regulatory skepticism, Australians are increasingly interested in digital assets. A Finder.com.au report revealed that nearly 27% of Australians view crypto as a long-term investment rather than mere speculation.

Monochrome Asset Management is capitalizing on this growing appetite, announcing plans to launch the country’s first spot Ethereum exchange-traded fund (ETF) on Cboe. The move underscores the growing demand for cryptocurrency investments among Australians.

“Crypto is not a dirty word,” Bowler emphasized, noting that it represents a “fundamental shift” in how we perceive value and financial transactions.

The Global Context

As Australia debates crypto’s role in its economy, the U.S. is taking a markedly different approach. President-elect Donald Trump has pledged to make the U.S. the “crypto capital of the planet,” with discussions around creating a strategic Bitcoin reserve to address national debt.

“The increasing interest in Bitcoin and broader adoption of digital assets indicate a global shift in how we view value and exchange,” said Bowler. She argued that Australia must recognize and embrace this shift to remain competitive.

While the RBA dismisses Bitcoin’s potential, growing interest among Australians and global advancements in crypto adoption signal the need for a balanced regulatory approach. Acknowledging the transformative power of blockchain technology could position Australia as a leader in the digital economy, rather than leaving it to play catch-up.