Bitcoin Won’t See Widespread Adoption in Australia, RBA Official Says

A senior official at the Reserve Bank of Australia (RBA) said that bitcoin is unlikely to be widely adopted in the country. He outlined the digital currency’s price volatility as well as the stability of the Aussie dollar as the main reasons.

No to Bitcoin

Speaking at an Australian Business Economists event earlier today, Tony Richards, RBA’s payments policy division head, stated that bitcoin is unlikely to be adopted Down Under.

According to Richards, one of the main reasons that Bitcoin is supposedly doomed to fail in Australia is the stability of the country’s fiat currency – the Australian Dollar:

The stability of the Aussie dollar means bitcoin is unlikely to be widely adopted. […] When a country doesn’t have a credible currency, then people might look for other ones. […] Whether those are cryptocurrencies or something like the US dollar is another issue, but we in Australia have a perfectly credible currency called the Australian dollar; we’ve had low and stable inflation for at least 25 years; and the likelihood that we’d have significant adoption of an alternative currency seems to be pretty low.

Yet, taking a look at the six-months performance of both Bitcoin and the Australian Dollar against the USD reveal alarming (for Richards) similarities. This is how the Aussie dollar has performed against the USD since January 2018:

And this is how Bitcoin (BTC) has performed against the USD for the same period:

While it can’t be denied that Bitcoin is having six months in 2018, it seems that the ‘perfectly credible currency’ is also headed downwards.

Richard also noted that “local usage is currently so limited that the RBA does not see it having any impact on monetary policy.” Of course, the incredibly “limited” usage of cryptocurrency is still more than enough for the country’s Taxation Office to classify it, along with all other cryptocurrencies, as assets and collect Capital Gains Tax (CGT) on gains…

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