• A large number of Australians see digital assets as a wealth creation tool and are willing to switch banks in search of crypto products.
• The Australian government is also preparing for a clear framework and reforms for digital assets.

Australia is gearing up for some major reforms taking place in the crypto space as more and more investors embrace digital assets. The recent survey from digital payments giant Visa shows that 1 in 3 is willing to switch banks/financial institutions for institutions that offer crypto services to their customers.

This was revealed through a study conducted recently. The study by Visa – The Crypto Phenomenon: Consumer Attitudes & Usage – finds that the awareness for crypto among its popular decision-makers is a staggering 93 percent. Furthermore, the research notes that more than one-quarter of Australians have directly engaged with crypto as an investment or a medium of exchange. Anthony Jones, Visa’s Head of Innovation and Partnerships for Australia said:

Digital currencies and crypto assets signify a technology shift not only for money movement but also digital ownership, with growth in this space poised to continue. As consumer investment into this new asset class gains momentum and Australians start to evolve how they think about the future of money, every financial institution will require a strategy for crypto.

By surveying around 800 financial decision-makers across Australia, Visa has come to the following insights. It states:

1.  A significant segment of Aussies are using or investing in crypto.
2. Crypto owners are pretty excited about the new use cases.
3. Key motivators for crypto exposure are wealth building and belief in crypto as the future of financial services.
4. Aussies find crypto payments cards and crypto-linked rewards as attractive.
5. Consumers are also willing to switch banks in search of crypto products.

Australian government prepares for crypto reforms

The Australian government seems to be preparing for introducing a legit crypto framework. Besides, there’s also news that the Australian government is preparing for the rollout of a central bank digital currency (CBDC).

Treasurer Josh Frydenberg also said that the crypto reforms “will firmly place Australia among a handful of lead countries in the world”. The upcoming reform is reportedly the biggest transition of the Australian payments system since the 1990s.

Earlier in September 2021, the Australian Senate Committee proposed nine major reforms in the financial space. As per the Australian Financial Review, the government is in favor of six out of these nine reforms. This includes a licensing regime for crypto exchanges, laws to govern decentralized autonomous organizations, and a common access regime for new payments platforms. Speaking of the government’s plans for crypto regulations, Frydenberg said:

What is clear is that if we embrace these developments, Australia has an enormous opportunity to capitalize on the convergence between finance and technology.

For businesses, these reforms will address the ambiguity that can exist about the regulatory and tax treatment of crypto assets and new payment methods. In doing so, it will drive even more consumer interest, facilitate even more new entrants and enable even more innovation to take place.

For consumers, these changes will establish a regulatory framework to underpin their growing use of crypto assets and clarify the treatment of new payment methods