This Australian fintech leader says cryptos won’t replace traditional currencies in ‘another three lifetimes’
The value of bitcoin lies in its use as a finite commodity protected by rock-solid cryptography, rather than a currency used to buy goods and services, according to Loretta Joseph, chair of the Australian Digital Commerce Association (ADCA).
Joseph spoke to Business Insider following reports that Australian crypto trading exchanges must now comply with standards set out by financial intelligence agency AUSTRAC.
The announcement followed an 18-month consultation period between AUSTRAC and the ADCA.“We have defined crypto as a commodity,” Joseph said. “It’s not a currency for use as a means of exchange.”
“There was recently a key legal case in New York which defined bitcoin as a commodity. So I think central banks are starting to become less worried about perceived risks to the financial system.”
So while bitcoin and other cryptos are an exciting new asset class, if you think they’re about to turn the global financial system on its head — think again.
“That won’t happen in my lifetime, my daughter’s lifetime, or another three lifetimes,” Joseph said.
“To get the scalability, you’d need huge adoption. You can’t tell me we’ll go and replace entire monetary systems.”
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