Treasurer Josh Frydenberg will announce on Wednesday a complete reform of rules governing the funds system, to carry it updated with improvements comparable to digital wallets and cryptocurrency.
The federal government says with out the adjustments – the most important in 25 years – Australians companies and customers might more and more be making transactions in areas past the complete attain of Australian legislation, the place guidelines have been decided by overseas governments and multinationals.
It factors out that in three a long time fee strategies have gone from money to cheques, cheques to bank cards, bank cards to debit playing cards and now to “faucet and go” by way of digital wallets on telephones or watches.
Round a decade in the past, cryptocurrency was an idea. Presently, there are greater than 220 million members within the worldwide crypto market, together with many in Australia.
The deliberate reforms will centralise oversight of the fee system by guaranteeing authorities performs a higher management function. The treasurer might be given extra energy to intervene in sure circumstances.
Shopper safety might be strengthened, and extra competitors and innovation might be promoted.
The reform program might be in two phases. There might be consultations within the first half of subsequent yr on these which are most pressing and straightforward to implement. Consultations on the remaining might be performed by the tip of the yr.
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The federal government says the current one-size-fits-all licensing framework for fee service suppliers might be changed graduated, risk-based regulatory necessities.
There might be consideration of the feasibility of a retail central financial institution digital foreign money, and an examination of “de-banking” (the place a financial institution declines to supply a service to a enterprise or particular person).
Frydenberg says the excellent funds and crypto asset reform program would “firmly place Australia amongst a handful of lead international locations on this planet.
“It’s how we’ll capitalise on the chance for Australia to guide the world on this rising and fast-growing space which has virtually limitless potential functions throughout the financial system,” he says.
“For companies, these reforms will deal with the anomaly that may exist concerning the regulatory and tax remedy of crypto property and new fee strategies.
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“In doing so, it is going to drive much more shopper curiosity, facilitate much more new entrants and allow much more innovation to happen.
“For customers, these adjustments will set up a regulatory framework to underpin their rising use of crypto property and make clear the remedy of recent fee strategies.”
Michelle Grattan doesn’t work for, seek the advice of, personal shares in or obtain funding from any firm or organisation that may profit from this text, and has disclosed no related affiliations past their educational appointment.