{"id":369322,"date":"2021-11-19T08:00:14","date_gmt":"2021-11-19T05:00:14","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/reserve-bank-warns-aussies-over-punting-on-fad-driven-cryptocurrencies\/"},"modified":"2021-11-19T08:00:14","modified_gmt":"2021-11-19T05:00:14","slug":"reserve-bank-warns-aussies-over-punting-on-fad-driven-cryptocurrencies","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/reserve-bank-warns-aussies-over-punting-on-fad-driven-cryptocurrencies\/","title":{"rendered":"# Reserve Bank warns Aussies over punting on \u2018fad driven\u2019 cryptocurrencies"},"content":{"rendered":"

“# Reserve Bank warns Aussies over punting on \u2018fad driven\u2019 cryptocurrencies <\/strong>”
\n<\/p>\n

The Reserve Bank of Australia (RBA) has warned Aussie investors about speculating on digital assets as it casts doubt over the entire crypto sector. <\/p>\n

During a Nov. 18 address<\/a> to the Australian Corporate Treasury Association, the RBA\u2019s head of payments policy Tony Richards offered an overview on distributed ledger tech, crypto assets, stablecoins, and central bank digital currencies (CBDCs). <\/p>\n

In his speech, Richards raised questions over crypto\u2019s validity and growth in 2021 as he took aim at the amount of capital invested into memecoins such as Dogecoin (DOGE) and Shiba Inu (SHIB): <\/p>\n

\u201cThe recent boom in this area is perhaps best illustrated by the fact that Dogecoin, a cryptocurrency that was started as a joke in late 2013, had an implied market capitalization as high as US$88 billion in June this year.\u201d<\/p><\/blockquote>\n

\u201cAnd the Shiba Inu token, which app<\/a>ears to be equally free of any useful function, is currently the ninth-largest cryptocurrency, with a market capitalization of around US$26 billion,\u201d he added. <\/p>\n

Richards also asserted that public attention captured by crypto in 2021 was \u201cno doubt fueled by influencers and celebrity tweets,\u201d as he refuted the reported scope of how widespread crypto adoption really is in the country.<\/p>\n

\u201cSome surveys have claimed that around 20 percent of the Australian population hold cryptocurrencies, and one claimed that Dogecoin alone was held by 5 percent of Australians. I must say that I find these statistics somewhat implausible,\u201d he said.<\/p>\n

Richards outlined three scenarios in which the \u201ccurrent speculative demand could begin to reverse\u201d in crypto that would essentially leave digital assets with minimal use cases in his opinion. <\/p>\n

Firstly, he argued that investors may soon \u201cbe less influenced by fads\u201d and FOMO and instead pay more attention to warnings of regulators and policymakers. <\/p>\n

Secondly, he said that governments across the globe may aim to crack down on energy-intensive proof-of-work-based cryptocurrencies such as Bitcoin (BTC), and finally he said the tax authorities may aim to remove anonymity to clamp down on financial crime. <\/p>\n

Related: <\/em><\/strong>Aussie crypto companies keen to embrace regulations, says senator<\/em><\/strong><\/p>\n

Commenting on Richards\u2019 address, Steve Vallas the CEO of Blockchain Australia refuted the speculative-focused arguments against the entire sector, telling Cointelegraph that:<\/p>\n

\u201cSome regulators maintain an unhelpful and narrow focus on the speculative elements of the sector. That lens misses the remarkable infrastructure build that has occurred in recent years.\u201d<\/p><\/blockquote>\n

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A disappointing view in the face of a global opportunity to lead for Australia. <\/p>\n

“RBA warns of \u2018faddish\u2019 crypto crash” https:\/\/t.co\/9AIGlwmNoc<\/a> via @eyersj<\/a> @jessicasier<\/a><\/p>\n

\u2014 Blockchain Australia (@BlockchainAUS) November 18, 2021<\/a><\/p><\/blockquote>\n