Author: Jody McDonald

Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.

Categories
Australia Crypto News Economics Regulation

Report Finds Australia’s Crypto Economy Could Grow to $68 Billion by 2030

An analysis by global consulting firm EY (formerly Ernst & Young), commissioned by digital asset management company Mawson, has found the economic value of Australia’s cryptocurrency ecosystem could grow to A$68.4 billion by 2030 and employ around 206,000 workers.

The Cryptocurrency and the distributed digital economy in Australia report, released on December 10, says that unlocking the value of the digital assets market – which covers crypto, stablecoins, NFTs, DeFi, Web 3.0 and DAOs – requires “attractive” policy settings to be put in place to drive innovation.

“The magnitude of the economic benefits will depend on the speed and scale of uptake and the transformational potential of technology across different industries,” the report states.

Digital Asset Ecosystem Set For 30x Expansion

The report puts the current value of Australia’s digital asset ecosystem at A$2.1 billion. It argues that enabling an increase of more than 30 times the sector’s value in the next decade rests on:

  • fit-for-purpose regulatory systems that provide greater business certainty;
  • upskilling the nation’s workforce, including skilled migration; and
  • more certainty around tax settings related to digital assets and the way they are transacted.  
EY’s report shows the potential economic gains from high-growth policies compared to current approaches.

Under the right reform and growth conditions, the report predicts the cryptocurrency and digital asset economy could:

  • grow in value by more than 50 percent each year;
  • add up to A$250 billion to the national economy over the next decade, reaching a value of A$68.4 billion in 2030;
  • eclipse the economic contribution of Australia’s tourism, agriculture and energy industries;
  • generate more than A$2.8 billion in high-value exports by 2030 and
  • create thousands of digital jobs across various industries, including more than 200,000 employed in 2030 and cumulatively more than 765,000 full-time roles over the next decade.

Report Responds to Australian Senate’s Crypto Recommendations

In a statement announcing the report’s release, CEO and founder of Mawson, James Manning, said the analysis was commissioned in response to the Senate Committee report, Australia as a Financial and Technology Centre Final Report.

“We are at a crossroads. As an industry, we desperately need a fit-for-purpose policy and regulatory framework to provide greater security and certainty to consumers and the crypto industry,” Manning said. He added:

The Bragg Report recommendations, in particular, represent a significant coming together of industry, regulators and government. [Those] recommendations, if adopted, will revolutionise the Australian crypto sector and improve consumer protection, therefore driving innovation, confidence and growth in the sector. 

James Manning, CEO and founder of Mawson 

Capitalising on the booming sector is clearly of interest to the Australian government. In November, in an address at the Australian Financial Review Super & Wealth Summit, Liberal Senator Jane Hume, the Minister for Superannuation, Financial Services and the Digital Economy, noted the importance of crypto and stressed the role of government in encouraging innovation.

Categories
Blockchain Crypto News

Pearls of Australia Utilises the Blockchain to Prove Provenance and Ownership

A partnership between an Australian pearl farming and retail business and blockchain technology company Everledger will bring greater transparency to the sale and transfer of rare, high-quality pearls.

In an industry first, buyers of rare pearls produced by Pearls of Australia will gain a Statement of Provenance that guarantees certainty around the gems’ origin, attributes, sustainability practices, and journey from farm-to-market.

Sea pearls of the WA Kimberley coast. Source: Pearls of Australia

Immutable Digital Records on the Blockchain

Pearls of Australia has partnered with Australian blockchain platform Everledger – specialists in supply chain traceability – on a pilot program to provide accessible and immutable digital records for its pearl jewellery, via a platform called Provenance Proof. 

In a December 6 statement about the pilot, James Brown, managing director of Pearls of Australia and Australian Farmer of the Year 2021, said the impetus for the project was a perceived “erosion” of pearls’ value in the eyes of consumers:

We needed a way to make the value of pearls more visible and enduring beyond the dialogue we have with customers at a single point of time.

James Brown, Pearls of Australia

The Provenance Proof platform will make each pearl’s unique provenance and ownership data available to retailers and end consumers from a mobile phone or computer.

Verifiable Gems Add Value and Support Conscious Consumption

Known for its commitment to sustainability and quality, Pearls of Australia grows premium saltwater pearls across three farming operations in Western Australia and NSW, and also designs and sells luxury pearl jewellery online, at boutiques located on-farm, and through retailers. 

Everledger states that blockchain-enabled proof of provenance will add value for end customers by providing peace of mind and informing insurance or estate planning, making it easier to transfer ownership of pearl jewellery across generations. 

Everledger CEO Leanne Kemp also argues that unlike the problematic supply chains associated with diamonds, Australian pearls have a more sustainable story that can now be articulated for consumers.

“Where diamonds needed to counter conflict and human rights issues, pearls needed a platform to share their unique journey of harmonious collaboration between man and living nature,” Kemp says, adding: “There are exciting plans ahead, including how we ensure the positive impact of pearling is captured and shared.”

Blockchain solutions are increasingly being adopted to increase confidence in Australian products, including red meat and native superfood, the Kakadu plum.

Categories
DeFi Tokens

DeFi Analytics Platform DappRadar Set to Launch Own Token and Dapp Store

A leading platform to help people find and understand the market performance of decentralised applications (dApps) – DappRadar – has announced it will transition to a dApps store and launch a native token called RADAR. 

A go-to source for comparing the performance of dApps, DappRadar tracks and analyses market data (user numbers, activity, transaction volumes) for over 8,000 dApps used for gaming, trading, NFTs, finance and more – across 20 blockchains, including Ethereum. Users can easily find and track the most highly ranked dApps, and developers can use the platform to reach new users.

Towards Greater Self-Sufficiency

In its November 26 announcement, the crypto startup said that introducing a native token would support its aim to “become a community-curated project, with an ecosystem that is self-sufficient within the greater infrastructure of Web3 and the future of decentralisation”.

$RADAR holders will be able to take part in decision processes and be rewarded for their contributions within the DappRadar ecosystem. A launch date for the token has yet to be announced.

According to Skirmantas Januškas, DappRadar co-founder and CEO:

Decentralisation stands at the very core of our success and it’s only right to take it to the next level – true decentralisation of DappRadar. Bringing the community closer is the only way to keep ahead of the curve and remain successful in the years to come.

Skirmantas Januškas, CEO and co-founder, DappRadar

In addition to launching a native token, DappRadar signalled that its platform would now be known as “The World’s Dapp Store”, enabling purchases and providing a marketplace where dApps are curated based on quantitative methods. The marketplace will take zero commission from dApp creators. 

Launched in 2018, DappRadar is based in Lithuania and backed by Naspers Ventures, Blockchain.com Ventures, and Angel Invest Berlin.  

Growth of dApps Fuels Blockchain Networks

A growth in the creation of dApps is fuelling the growth of blockchain networks and the evolution of traditional apps.

Layer-2 scaling solution Polygon revealed in October that it was becoming less dependent on Ethereum due to the adoption of its network for natively launched dApps. 

Social media app Twitter announced a new hire in November to lead its ‘Crypto Twitter’ team to incorporate crypto, blockchain and dApps into the platform.

Categories
Crypto News Payments Ripple Stablecoins

Small Island Nation Palau Partners With Ripple on Eco-Friendly Digital Currency

The Republic of Palau, an archipelago of 500-plus islands and part of the Micronesia region in the western Pacific Ocean, is partnering with digital payment network Ripple to develop its own digital currency.

Palau Wants a Stablecoin, Not a CBDC

According to an announcement by Ripple on November 23, the partnership will focus on developing strategies for cross-border payments, resulting in the creation of the world’s first government-backed national stablecoin.

Ripple has experience building global payment systems and has made provision to implement its new stablecoin during 2022, looking to assist the country from a technical, business, design and policy perspective.

As part of our commitment to lead in financial innovation and technologies, we are delighted to partner with Ripple. The first phase of the partnership will focus on a cross-border payments strategy and exploring options to create a national digital currency, providing the citizens of Palau with greater financial access.

Surangel Whipps Jr, Palau’s President

Interestingly, Palau has elected to create its own digital currency rather than a CBDC. One of the primary reasons for doing so is that the island nation has committed to being carbon-neutral and was apparently attracted to XRP on the basis of it being carbon-neutral and 120,000 times more energy-efficient than proof-of-work (PoW) cryptocurrencies. Furthermore, it saw XRP as offering advantages over PoW with regards to scalability, speed and reduced costs.

We are excited to be working with Palau to achieve its financial and climate-related goals. We have a wonderful opportunity to bring together our technology and experience with the unique characteristics of Palau to make a real economic and social impact for the country.

James Wallis, VP, central bank engagements, Ripple

Despite its gaining a lot of positive attention, some have questioned the value of the partnership:

Ripple Moves Forward Despite SEC Case

Recently, Ripple joined Bhutan’s Royal Monetary Authority (RMA) to test retail, cross-border, and wholesale CBDC payment systems for a digital Ngultrum. And despite an ongoing battle with the US Securities and Exchange Commission (SEC), Ripple has plans to go public and provide support for nations issuing CBDCs.

Evidently, Ripple still has some obstacles to overcome in the near term. Notwithstanding, its recent actions suggest the company remains largely uninhibited in its push towards global adoption.

Categories
Crypto Exchange Crypto.com Sports Tokens

CRO Token Soars 30% Amid $700 Million Deal with Los Angeles Lakers

News of Crypto.com securing naming rights to Los Angeles’ iconic Staples Center has seen the price of the exchange’s coin (CRO) soar, hitting an all-time high of just below US$0.57.

Crypto.com announced on November 16 that it had entered a 20-year partnership with sports entertainment company AEG, which owns and operates the Staples Center – home to four professional sports teams, including the Los Angeles Lakers and LA Kings, and a premier venue for concerts, special events and awards shows, including the Grammy Awards.

The partnership agreement includes:

  • renaming the Staples Center to Crypto.com Arena, effective December 25;
  • Crypto.com featured across the venue via branding and signage throughout the interior and exterior of the facility; and
  • Crypto.com becoming an official cryptocurrency platform partner of NBA team the LA Lakers and NHL team the LA Kings.

Commenting on the agreement, Crypto.com co-founder and CEO Kris Marszalek said:

We’re very excited about partnering with AEG and investing long-term in this city, starting with Crypto.com Arena in the heart of downtown, and using our platform in new and creative ways so that cryptocurrency can power the future of world-class sports, entertainment and technology for fans in LA and around the world.

Kris Marszalek, co-founder and CEO, Crypto.com

Todd Goldstein, chief revenue officer of AEG, added:

This partnership represents the fastest-growing cryptocurrency platform and the biggest sports and live entertainment company in the world converging to drive the future of sports and live entertainment as well as the incredible legacy of this arena for decades to come.

Todd Goldstein, chief revenue officer, AEG

The CRO token increased in value earlier this month after being listed on Coinbase, reaching almost US$0.40 within two days after tracking sideways under $0.20 previously. 

It seems Crypto.com’s aggressive marketing and focus on sporting sponsorships is paying off. The exchange also partners with the UFC, Formula 1, and in September signed a deal with French football powerhouse Paris Saint-Germain.

Categories
Crypto News Cryptocurrencies DeFi Payments Stablecoins

RBA Discusses Future of Payments in Australia and Cryptocurrency ‘Risks’

The Reserve Bank of Australia (RBA) has discussed the need to regulate stablecoin usage in the application of DeFi for payments, and also noted the “considerable risks” associated with meme coins during its November monetary policy meeting.

In the meeting’s minutes, the RBA acknowledged innovations such as distributed-ledger and smart contracts could change the face of the financial sector but that it would likely rely on the use of stablecoins or CBDCs rather than cryptocurrencies. The RBA said:

… if stablecoins were to be used widely, they should be subject to regulation that ensured they were safe for users and promoted financial stability.

Reserve Bank of Australia members

In considering the future of digital assets in payment, the RBA hit out at cryptocurrencies, which it described as having “numerous shortcomings as stores of value or means of payment”. 

The central bank said the risks and speculative nature of crypto investment was especially obvious when it came to “meme coins”, and noted warnings that investors caught up in the recent boom could experience large losses. 

Crypto Risks a Focus Even As Regulators Explore CBDCs

Australia’s financial regulators continue to warn investors about cryptocurrencies, even as they tentatively consider the possibilities of CBDCs. 

In August, the Australian Securities and Investments Commission (ASIC) reiterated its warning for Aussies to be wary of investing in unlicensed companies – that is, companies that do not hold an Australian financial services (AFS) licence or an Australian market licence (AML).

The RBA also used its November meeting to express its support for CBDC-related initiatives including developing a proof-of-concept of a wholesale CBDC in 2019 and the recently completed Project Atom, which explored the potential use of a central bank CBDC using distributed ledger technology in collaboration with blockchain company ConsenSys.

In addition, the RBA recently advertised it was seeking to hire people for a new cross-disciplinary “CBDC Research Team” to support the evolution of payments in Australia.

Categories
Institutions Investing Surveys

Report: 84% of Institutional Investors Interested in Crypto, ETF Needed

A survey of more than 1,000 institutional investors from across the US, Europe and Asia found that most believe digital assets have a place in a portfolio and were interested in crypto-based products such as ETFs. 

Respondents to the survey, conducted by Fidelity Digital Assets in early 2021, included financial advisers, high-net-worth investors, family offices, and professionals working for hedge funds, pension funds and venture capital firms.

Over half (52 percent) were already invested in digital assets (predominantly Bitcoin and Ethereum) and nearly nine in 10 said they found crypto appealing, especially in terms of its high potential upside. 

Key barriers to investment in crypto cited by investors include price volatility (54 percent), lack of fundamentals to gauge appropriate value (44 percent), and market manipulation (43 percent).

Key Findings of Institutional Investor Research

  • 70% of all investors surveyed had a neutral-to-positive perception of digital assets;
  • 84% of US and European investors, and 90% of Asian investors, said they’d be interested in institutional investment products that hold digital assets;
  • 62% of US investors expressed a neutral-to-positive view about a potential bitcoin ETF;
  • Nearly eight in 10 investors surveyed felt digital assets have a place in a portfolio; and
  • 43% of investors surveyed identified digital assets as part of the alternative asset class.

Regional Differences in Crypto Investment

The research provides insights into how digital asset adoption varies by region: 

For the second year in a row, the survey found that European investors have a more progressive view towards digital assets than Americans when comparing the responses across all categories. Even so, Asian investors, who we surveyed for the first time this past year, are by far the most accepting of digital assets, with more than 70 percent of investors surveyed currently invested in digital assets.

Jack Neureuter, Fidelity Digital Assets

Compared to previous surveys, more US investors said they’d bought digital assets through an investment product in 2021 while 30 percent of US respondents said they’d prefer to buy an investment product in future – which the report speculates could signal investors’ hopes that a crypto ETF will be approved by regulators.

While investment products were popular among European and Asian investors, they were more likely to buy digital assets directly. 

Fidelity Digital Assets’ survey results reinforce the views of finance professionals surveyed by Deloitte earlier this year – 76 percent of those respondents said they believed crypto would be a strong alternative to, or outright replace, fiat money within the next decade. 

Another report released this month found that six in 10 multinationals are already using crypto and blockchain technology, although typically for transactional purposes rather than as investment assets.

Categories
Binance Crypto Exchange Stablecoins

Earn Money Creating Binance Content Through New Affiliate Program

Crypto exchange Binance has launched an affiliate program that gives people the chance to earn stablecoins and other rewards for creating and sharing quality content to promote its platform.

The Binance Affiliate Content Program gives social media influencers and content creators the opportunity to monetise their content to earn crypto rewards.

Affiliates can win prizes valued at up to 3,000 BUSD (USD-denominated stablecoin) per month by publishing original content – such as articles, videos and infographics – on topics set by Binance.

Content is scored by a panel of judges who assign a score out of 30 based on creativity, quality, and alignment with the Binance brand. By submitting content via the program, participants transfer copyright to Binance.

Aside from the prizewinners, all eligible content submissions that receive a grade of 18/30 or higher will earn creators a guaranteed 300 BUSD.

Quality content can earn creators up to 3,000 BUSD in rewards each month.

Additional rewards on offer include referral links, Binance swag, and the chance to be featured via Binance’s social media accounts.

To access topics and submit content for scoring, creators must first apply and be accepted into the Binance affiliate program. 

Before you start creating content, brush up on the crypto trading knowledge prospective investors need by reading Sam’s 10 Principles For Crypto Trading Success. 

Categories
Coinbase Crypto Exchange Crypto News

Coinbase Users Furious as Platform Fails Amid Crypto Crash

A service outage on cryptocurrency exchange Coinbase that thwarted many crypto investors’ attempts to buy during a dip has angered users and caused the platform’s stock price to fall.   

Coinbase shares fell as much as 6 percent on September 7 after what it described as a “degradation in our services” due to increased network traffic and market activity – likely as a result of a dip in the value of Bitcoin and Ethereum. 

The outage led to transactions on the platform being delayed or cancelled, along with other errors, which prompted many users to vent on social media:

One Reddit user complained: “Sure would’ve been nice to get ANY of my orders filled this morning during the crash, but no, CoinBase system fails again.”

Another compared trying to purchase via Coinbase to a lottery:

Many Coinbase users took to Reddit to rant.

Multiple posts claimed that Coinbase users had been charged for transactions but hadn’t received the crypto, or had their accounts frozen. 

Outage Adds to Coinbase Woes 

A number of crypto exchanges have experienced technical problems, though Coinbase has had more issues than most of late. 

Just last week, Coinbase announced it would compensate users affected by erroneous two-factor authorisation notifications. The platform is also facing a class-action lawsuit in relation to claims it failed to disclose relevant information before its listing on NASDAQ in April. 

Categories
Banking CBDCs Crypto News

ANZ Bank Shortlisted for Singapore’s Retail CBDC Project

One of Australia’s ‘Big Four’ banks, ANZ is one of 15 finalists in a global competition to develop a Central Bank Digital Currency (CBDC) solution. 

The Monetary Authority of Singapore (MAS) announced the shortlist for its Global CBDC Challenge on August 30 after considering more than 300 submissions from over 50 countries.

Entrants were asked to propose solutions, using any technology, to develop a retail CBDC that would be cost-effective to implement, accessible, and contribute to financial system resilience and integrity. 

ANZ is the only Australian organisation to be shortlisted. Other finalists include six companies from Singapore and four US-based companies, including IBM.

ANZ’s proposed solution will leverage existing e-governance and ‘smart nation’ initiatives, drawing on known services like national ‘digital identity’ management.

CBDC Innovations to be Revealed at Global FinTech Event

Chief FinTech Officer for MAS, Sopnendu Mohanty, said:

The Global CBDC Challenge aims to discover and develop retail CBDC solutions that will benefit the global community. We are encouraged by the strong interest from established financial institutions and emerging FinTechs alike. The quality of proposals received from the global innovation community was impressive. 

Sopnendu Mohanty, MAS

The competition to encourage innovative retail CBDC solutions to enhance payment efficiencies and promote financial inclusion was run in partnership with the International Monetary Fund, World Bank, Asian Development Bank, United Nations Capital Development Fund, United Nations High Commission for Refugees, United Nations Development Program, and the Organisation for Economic Co-operation and Development.

Finalists will progress to an eight-week ‘Acceleration Phase’ to develop and prototype their solutions ahead of a demonstration during the Singapore FinTech Festival 2021, a global event held in November. Three winners will be selected and each will receive S$50,000 (A$50,100) in prizemoney.  

What are CBDCs and is Australia Developing One?

Central banks around the world have recognised that digital currencies are here to stay and are developing digital forms of fiat currency – known as CBDCs – which can be classified as retail (for everyone) or wholesale (for use by permitted institutions).

In February this year, the Reserve Bank of Australia (RBA) indicated it was focused on the potential launch of a wholesale CBDC but did not see a strong case for a retail CBDC.