Category: Australia

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Australia Blockchain

Due to Lack of Education, 70% of Australian Businesses are Missing Out on Blockchain and Fintech Technology

Australia has been a crypto-friendly APAC country for several years, providing a solid ground for fintech companies and the issuance of digital assets.

But despite the record-number of DeFi and Fintech development of several companies in the last month, over 70% of Aussie businesses are missing out on fintech technology.

According to a report from accounting body CPA Australia and Airwallex —called “The Role of FinTech in Modernising Businesses” —only a third of businesses in the Asia-pacific area are willing to implement fintech and blockchain-related technologies.

Main Concerns for Aussies Businesses

Australia is currently a leading APAC country in fintech usage. Although, at least 70% of Aussie businesses are not willing to implement these technologies. One of the main concerns for Aussies was “cybersecurity reasons”.

Several respondents were not educated in these digital spaces, and, naturally, some of them have fear of data leaks, and security and trust concerns.

Although, Australia is a leading country when it comes to fintech and digital assets, around 40% of businesses are unaware of fintech technology.

Despite the several benefits —and challenges as well— that fintech and blockchain technology can bring to Australians, over 70% remain unsure about transitioning to these digital environments.

Educating Aussies in Digital Areas

Several Aussie businesses still struggle with high banking fees and the inability of establishing international bank accounts.

The main problem, accordingly, relies on the lack of education regarding blockchain and fintech-related areas in businesses and finance in general.

Australian businesses are falling behind their international counterparts when it comes to the uptake of fintech solutions. The current business environment amid the COVID-19 pandemic has made digital technologies more essential than ever before.

Stated Gavan Ord, Manager at CPA Australia, for Australian Fintech.

To address these issues, Airwallex and CPA Australia are aiming to educate Aussies so they can jump in on the set of benefits that blockchain and fintech technology can bring to their businesses. We have also seen recently TAFE Queensland list blockchain courses for Advanced Diplomas of Applied Blockchain.

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Australia Blockchain Industries

Blockchain Australia And RMIT Call For More Government Support For Blockchain Tech

As the number one local coalition of blockchain-associated companies, Blockchain Australia Solutions stated that although the Australian government has been taking great steps to improve the fintech and blockchain ecosystem in Australia, measures taken are beginning to lag behind those taken by other countries.

Australia Is Well-Placed To Become A Tech-Savvy Economy

Steve Vallas – the CEO of Blockchain Australia – noted that although certain steps have already been taken by the Australian government – such as the National Blockchain Roadmap – have greatly improved the adoption of blockchain-friendly regulation across Australia, the country has started to lag behind other countries when it comes to blockchain – and in turn, this could hurt Australia’s chances of attracting investors.

“I think everyone knows that we have a very good regulatory framework, but the sign doesn’t say ‘Open for business’ with respect to this technology, so, when we look at some of the custodian businesses and the like that are taking shape in the United States, they’re not naturally coming to Australia because no one is saying that this is a welcoming environment and you can trust our regulatory framework, and we’re open to a conversation about what these businesses could do in Australia.”

Steve Vallas’ statements were accompanied by those of three lawyers and economists from RMIT, who noted that Australia is currently in a good spot to work on blockchain-related regulation – but that the government must act quickly before other governments take the lead and attract potential investors.

Dr. Darcy Allen – an economist affiliated with RMIT – also noted the importance of digitalizing the economy, and making blockchain-based records accessible to Australian regulators.

It’s worth noting that these remarks pertaining to expanding blockchain support to attract fintech investors to Australia echo the sentiments of Senator Andrew Bragg, a notorious “friend in high places” of blockchain technology.

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Australia Bitcoin Institutions

As Morgan Stanley Bets $150B in Bitcoin, Craig Wright Now Calls BTC a “Ponzi Scheme”

As Bitcoin is taking the media by storm with increasing integration to institutions and technology corporations, Craig Wright —the self-proclaimed Satoshi Nakamoto— now calls BTC a “Ponzi Scheme” where everyone will soon “jump in”.

In an interesting turn of events, the Australian man who proclaims himself the creator of Bitcoin is now —ironically— trashing his own “creation” and states that he got “insanely rich” ever since.

A $150 Billion bet on Bitcoin

Wright’s comments came shortly after JP Morgan, one of the largest investment banks in America is currently exploring investing $150 billion in Bitcoin with Counterpoint Global —one of the several Active Equity Teams from Morgan Stanley.

Bitcoin nearly reached the $50,000 price level following Morgan Stanley’s announcement, reaching a maximum trading level of $49,669.

BTC/USD Chart. A new All-Time High for Bitcoin.

But as Bitcoin takes the spotlight, Wright compares Bitcoin to a controversial $65M Ponzi scheme in the U.S., elaborated by the market maker and financial advisor Bernie Madoff in 2009.

The price goes up because people are paying and the price goes up. But that doesn’t ever last forever. Old Charles Ponzi did that one too. And Mr. Madoff … Eventually, people go. Digital gold is boring. The [paper’s] first section talks about micropayments, which were the holy grail.

Stated Wright

Likewise, this January, Wright went all out with his lawyers against several sites that posted Bitcoin’s Whitepaper, specifically, Bitcoin.org. and Bitcoincore.org. But his claims were dismissed, and several governments including Colombia and Estonia —even the City Mayor of Miami— incorporated the document on their servers.

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Australia Trading

Volume of Aussie users looking at Cryptocurrencies up 132% between July 2020 and January 2021

Media Release – 15 February 2021 – New Australian data from TradingView, the social charting network for investors and traders and among the 100 most visited websites in the world, reveals data about Australians’ fast-growing interest in the cryptocurrency market. 

Bitcoin, most popular asset

Between July 2020 and January 2021, the volume of unique searches for cryptocurrencies on TradingView grew from 17,044 to 39,477—an increase of 132%. 

Looking at individual assets for the month of January, bitcoin topped the rankings for the most popular asset on TradingView in Australia by a landslide, with 25,931 unique searches, ahead of forex page AUD/USD (11,767) and Tesla (10,808). 

In terms of page views overall, bitcoin was the third most popular asset between last July and January 2021 in Australia, with 2.6 million total views, closely behind forex symbols AUD/USD and EURUSD (both 2.9 million).

The rise of altcoins

In January 2021 only, cryptocurrency pages on TradingView received 7.6 million views, and 29 million views between July and January. New South Wales users are leading the pack, generating 31% of this traffic, ahead of Victoria (25%), and Queensland (21%). 

Ether (ETHUSD), the cryptocurrency built on top of the open source Ethereum blockchain, has also received significant interest from Aussie traders, having been viewed 553,352 times in January 2021 from 16,581 unique users. Interestingly, the altcoin has received more attention than other popular assets such as Apple (AAPL – 7,121 users), Gold (GOLD – 5,233 users), and GBP/USD (8,298 users). 

Ripple (XRP) also became more popular than the aforementioned assets by capturing the attention of 8,330 unique Australian users. This growing popularity of altcoins is testament that the cryptocurrency trend is not only about bitcoin. In fact, when looking at the top 30 cryptocurrencies on TradingView, bitcoin represents only 20% of total views, and 19% of unique users in the last seven months, and when considering all the cryptocurrencies only 9% of total views. 

Despite this sharp increase in interest in the past few months, it is worth noting that Australia ranks 91st in a list of 230 countries and territories TradingView operates in, in terms of proportion of views to cryptocurrency pages vs total views on the platform. 

Quote from Glenn Leese, Director of Growth, TradingView

“These figures are aligned with the bullish attitude toward cryptocurrencies we’ve seen globally in recent months, with credibility of the asset compounded by institutional backing and elevated interest from established companies. This is a trend we’re likely to see continue here in the local market, with some traditional financial advisors now recommending that bitcoin be part of investment portfolios.

Additionally, the increased awareness of decentralised projects, like Ethereum and Ripple, are fuelling the uptake in altcoin adoption. It’s also suggestive of where the priorities of Aussie traders’ lie and a key indicator that confidence in cryptocurrencies as a whole is at an all-time high. 

However, when choosing to invest in cryptocurrencies, it’s important that traders base their decisions on technical and fundamental data rather than on word of mouth. There has never been a more crucial time to do your own research and look before you leap.”

Methodology

All data was extracted from the TradingView platform, looking at Australian users’ activity between July 2020 and January 2021, which includes 230,000 registered users in February 2021, and 2.25 million unique visits from Australia in 2020. 

About TradingView 

TradingView is the world’s most popular network of traders and investors – powered by real-time data and market-leading analysis software. Use its platform to follow global assets, find trading ideas, chat with others, spot trends, and place trades directly with brokers. Have a look by visiting www.tradingview.com or downloading the free TradingView mobile apps for iOS and Android. For your website or business, visit www.tradingview.com/widget.

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Australia Bitcoin Investing

Australian Teenager Investors Are Growing In Number – And Thriving

When you’re a young lad, your interests tend to revolve around the same things they have for centuries – enjoying the outdoors, chatting with your mates, and occasionally trying new things for the thrill of it.

Disclaimer: Be careful when trading Cryptocurrencies. They could can easily go to zero as well as going up. Please read our basic guides to learn more.

$10k Before Sweet Sixteen

To say the world is changing is an understatement. In Australia, for instance, older high-stakes pastimes are being phased out for more profitable ones – in this case, crypto investing.

According to the Sydney Morning Herald, these days teens are more likely to be trading in crypto – and making a tidy sum off of it, in many cases.

Sam from Cronulla Beach is an avid surfer – and he’s put his earnings from his job as a surfing instructor towards the crypto market, where he’s managed to turn a profit of 8.5k so far before hitting 16.

Sam Cornock, 15, uses apps such as CoinGecko and YouTube to research the market in cryptocurrencies. – Source: The SMH

Waking up to catch some waves before school leaves you plenty of time to check the market before others wake up – and in crypto trading the early bird tends to get the worm.

Sam knows this and says that he’s planning to cash out before the market becomes shaky.

I just figure if everyone is talking about it and FOMOing, surely, it’s going to pop soon. Maybe I’ll take a little bit of money out, so I don’t get burnt on the way down.”

In order to trade, he’s using a crypto trading account opened in his father’s name – who is quite proud of his sons’ success in a very volatile market.

“As a parent, I’m amazed by how many hours of reading and research he is doing. He’s researching economics and what the market is doing.”

It’s important to note that cryptocurrency – like any investment – tends to be incredibly volatile, and should be approached with caution and a good amount of research.

Sam trades in Bitcoin, Ethereum, and Polkadot – but admits he’s also lost some on riskier ventures. Haven’t we all though?

Big up to you Sam!

Categories
Australia Bitcoin Crypto News

ASIC will Welcome Bitcoin ETF With Proper Rules in Place

ASIC will Welcome Bitcoin ETF With Proper Rules in Place

The Australian Securities and Investments Commission (ASIC) has voiced out their stance regarding exchange-traded funds (ETFs) linked to Bitcoin, while addressing claims that it has a “secret policy” to stop such investment products tied to cryptocurrencies. The regulator is only concerned about investors’ protection and will welcome Bitcoin-linked ETFs, provided there are appropriate rules in place to protect the investors, according to the report by the Australian Financial Review on Friday.

ASIC Refutes Having Policy to Stop Bitcoin ETFs

The development is coming after the CEO of Cosmos Capital, James Manning, asserted that the regulator “have a policy — which they have not released — which says they do not want an exchange traded product, an MIS, listed on an exchange.” Note that, Cosmos Capital, a cryptocurrency mining and digital asset management company, tried to list a Bitcoin-linked ETF on the National Stock Exchange of Australia. However, the initiative was turned down by ASIC.

While addressing the claim today, ASIC commissioner Cathie Armour explained to the Senate select committee on financial technology that the effort from Cosmos Capital to list a Bitcoin ETF was rejected because the National Stock Exchange doesn’t have any proper rule to protect the investors. With appropriate rules in place, such products can be made available in Australia.

Bitcoin ETFs are Possible in Australia

“For any products to be quoted on exchange markets in Australia, the particular market needs to have in place rules that facilitate the quoting of products […] Not all markets have rules in place that do that. […] These products can be made available to Australians through a managed investment scheme regime and Australians can invest in these products in that way,” the commissioner precisely explained.

Bitcoin ETFs can be regulated under the Australian Securities Exchange’s AQUA Rules, according to Armour. This set of rules are specifically designed for ETFs, managed funds, and other related investment schemes. The National Stock Exchange of Australia doesn’t have such rules, Armour added.

The follows news a few months ago Australia’s Central Bank Tells ASX to Push on With Delayed DLT Trading Platform. Having confirmed it was replacing CHESS in December 2017, ASX originally planned to launch the new system in Q1 2020.

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Australia Bitcoin Crypto News Gold

Australia’s Newcrest Wants Crypto Investors to get Some Gold

Bullish: Bitcoin Miner Net Position Change Still Positive

As digital currencies continue to increase in value, they keep attracting the attention of many investors, than in other traditional assets. One of the executives at the Australian largest gold mining company, Newcrest, opined today that the growing value of cryptocurrencies should be the more reason investors should consider having other assets like Gold. This statement comes due to the high volatility of cryptocurrencies like Bitcoin (BTC).

Newcrest Suggests you Should Hold Some Gold

The largest cryptocurrency, for instance, has surged significantly since the start of the year. Just some days ago, BTC reached another all-time high (ATH) in value at over US$47,000. Other popular alternative coins like Ether (ETH), Polkadot (DOT), Binance Coin (BNB), etc., reached a new high in market value this year. However, these cryptocurrencies are all trading slightly below the ATH price.

But as the cryptocurrency market keeps growing, Sandeep Biswas, the CEO of Newcrest Mining Ltd, told Bloomberg TV that digital currency investors should consider getting some of the age-old haven assets to protect their capital/profit from the high volatility in cryptocurrencies. “If you’re into cryptos, you want to consider having some gold. […] “may act as a bit of a hedge against the volatility of cryptos,” Biswas commented.

The CEO added that Gold is a different class of investment from cryptocurrencies and would benefit investors since it’s a more stable asset. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want,” he further noted.

Crypto and Gold can Co-exist

Biswas’ statement somewhat indicates that cryptocurrencies can co-exist with Gold. Many people think that the growth in the crypto market might pinch demand from Gold. However, companies like Goldman Sachs Group Inc. had noted that the traditional assets would continue to maintain their stand in the market. At press time, Bitcoin was trading at US$45,125 on Coinmarketcap, while an ounce of Gold traded at US$1,850.

Categories
Australia Bitcoin Cryptocurrencies

45% of Australians Invest In Crypto “Because it’s going up in value”

Nearly 50% of Australians are investing in crypto-assets because “it’s going up in value”. Moreover, 19% of Aussies are investing in cryptos for “portfolio diversification”, followed by a 13% that consider digital assets as a hedge against inflation.

Reasons why Aussies are investing in crypto. Source: Finder

Likewise, Ethereum has replaced Ripple as the second most-preferred digital asset for Aussies, with 6% of them owning and trading ETH.

Crypto-preference by Australians.

Bitcoin as a Store Of Value For Aussies

There could be a biased background if Australians are only investing in cryptocurrencies in a rushed manner just because large corporations are accumulating and pumping BTC’s price —there is at least 30% of BTC supply own by tech and investment trusts—. The major differences for this bull compared to 2017 can be outlined in the following:

  • The COVID-19 pandemic not only crashed the Stock Market and contracted global economies— the U.S. Federal Reserve started to print more money as thousands of Americans were losing their jobs every day due to lockdowns.
  • Hence, the more money is printed, inflation increases. The Dollar is considered the world’s reserve asset and, naturally, people will seek better stores of values and any asset that works as a hedge fund against that inflation, such as precious metals; digital assets, and other commodities.

Bitcoin’s evolution has surpassed the first stages of hypeness that was driven by retail traders, trading and exchanging outstanding amounts of BTC. According to Forbes, transactions by November 2017 surpassed more than $2B worth of Bitcoin. Now the stage for BTC has surpassed that collectible level, entering the store of value scenario.

What Aussies Should Consider Before Investing in Crypto

Reviewing the charts, a $38-40k price could become an essential support level for Bitcoin. In mid-January, the price dipped more than -10%, entering a strong consolidation zone that swung the price between $30-34k levels before Tesla’s announcement.

The more vertical the price direction is, the more speed the price has in it. This is what is called time-based pricing. The arrival of institutions has skyrocketed the price of Bitcoin, turning the price direction more vertical — which means a higher price velocity.

The price drop at the end of January could be considered the first correction since the bull run started in mid-2020. Likewise, if other institutions follow Tesla’s path, Bitcoin could go as high as 100,000 by the end of 2021 before going through two more correction zones.

BTC/USD chart.

Reviewing the charts, there could be another correction zone with price swings between 40 to $45k, before taking off to +50K. This could mark an opportunity, considering several Aussies bought the dip when BTC fell to 28K.

CNBC crypto-trader and analyst Ched pointed out the price could reach even higher levels, up to US$70,000 in a month. The probability relies on the outstanding shift in price speed and trading volume reviewing the charts.

Australians who are new to cryptocurrencies looking to invest in them can also review Cryptonews Australia’s Bitcoin Guides to know the essentials before investing in these assets.

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Australia Bitcoin Institutions

Nearly 5 Million Of Australians Will Own Crypto in 2021

Elon Musk became Bitcoin’s holy savior for the bulls since his company, Tesla, announced investing $ 1.5B —roughly AU$ 2B— in BTC this month, driving the price to a new All-Time High over $46K.

The announcement generated another wave of FOMO —Fear Of Missing Out— and a sheen interest not only among Australians but in the mainstream as well.

Bitcoin’s Arrival to the Corporate World

Scott Phillips, from The Motley Fools Australia, shared his thoughts about the entrance of Bitcoin to corporations in America.

While countries like Nigeria and India are trying to curtail —or even ban— cryptocurrencies, the more that Bitcoin enters American corporations, the farther they will expand globally.

In Australia, there are more financial institutions adopting cryptocurrencies and blockchain technology. Recently, several major banks have joined to create the first-ever digital bank guarantees incorporating blockchain technology. 

This bank is a joint venture between Commonwealth Bank of Australia, Westpac Banking Corp, Australia and New Zealand Banking GrpLtd, Westfield owner Scentre Group, and IBM.

Elon, a Savior For Hodlers

Phillips added that Elon Musk knew Tesla’s investment would become “a sign” for Bitcoin Bulls. The more that financial institutions and big tech companies embrace crypto-assets, the more people —unaware— would want to join in due to FOMO. Collaterally, this would spike the price even further.

The true believers are already there. The latecomers, those influenced by Musk and his social media antics, certainly will also jump on that train. Whether or not Tesla makes a profit or loss on that $2 billion investment, that remains to be seen.

Stated Phillips for Sky News Australia

Nearly 5 Million Of Australians Will Own Crypto in 2021

As reported by Cryptonews Australia, Aussies will be more likely to invest in cryptocurrencies this year.

Now, an updated report from Finder shows another 5 million more Australians are ready to invest in cryptocurrencies this year.

While millennials are generally more aware of digital assets, other demographic sections like Baby Boomers are the most-inclined to invest in crypto-assets to diversify their portfolio.

Investment demographics. Source: Finders

Likewise, nearly 50% of Aussie investors pointed out the only reason they invested in cryptocurrencies is increasing value — while others consider cryptos as future hedge funds against fiat inflation.

Statistic regarding cryptocurrency interest. Source: Finders

As stated by Scott Phillips, “Bitcoin is well and truly” in the mainstream. Andrew Munro shared similar thoughts by stating that crypto-assets will become more accessible for Australians — and the general population, despite the effort from governments to regulate and control cryptocurrencies.

Five years ago, names like Dogecoin and Ethereum would have held little meaning for those outside the crypto community. Now we are seeing these names all over mainstream media which is likely to make cryptocurrency feel like a more accessible option for budding investors.

Stated Andrew Munro, crypto-editor from Finders
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Australia Blockchain

CBA, Westpac, ANZ Issues First Digital Bank Guarantee on Blockchain

CBA, Westpac, ANZ Issues First Digital Bank Guarantee on Blockchain

Lygon, a blockchain consortium of five organizations in Australia, has issued the first-ever digital bank guarantee in the country using blockchain technology. Bank guarantees are a pillar of financial systems worldwide. However, Australia has since relied on the traditional system of issuing these guarantees. Today’s development is considered as a major milestone that will digitize the process of commercial banking in Australia, according to the report on Tuesday.

First Paperless Bank Guarantee in Australia

The blockchain platform was formed by three banks in Australia – Australia and New Zealand Banking Group (ANZ), Westpac, and Commonwealth Bank of Australia (CBA) – together with IBM Australia and Scentre Group. The platform is focused on streamlining the banking process in Australia, and it’s powered by the IBM blockchain network. For more than 200 years, banks in the country mostly issued paper-based guarantees.

This traditional method of issuing bank guarantees was not only time-consuming but also expensive. It wasn’t also the most transparent method, which led to the establishment of Lygon. Basically, this platform is aimed at digitizing the entire process of paper-based guarantees through blockchain technology, which has been achieved today. 

Lygon will Ensure Transparency with Blockchain 

“Lygon is paperless, transparent, accessible, and standardized, removing the inefficiencies, costs, and risks associated with a paper-based system,” said Lygon’s chief, Justin Amos. “The ability to reduce the risk of fraud and handling errors is a major advantage to Lygon, particularly given the heightened focus on digital security for businesses of all sizes and scale these days.”

According to Amos, the Lygon blockchain will be expanded to include other financial services in the country. The technology can be used to improve the processes with payment guarantees and financial instruments like performance bonds.