Australia could potentially miss out on an economic opportunity worth A$24 billion (US$17 billion) a year from crypto and digital assets by 2030, according to a new report from the Digital Finance Cooperative Research Centre (DFCRC).
However, without major changes in policy and regulation, the country could only gain around A$1 billion (US$710 million) a year, far below its true potential.
The DFCRC report highlights that regulatory uncertainty, poor coordination, and limited pilot projects are key barriers to the development of the crypto industry in Australia.
To address these, they propose the creation of regulatory ‘sandboxes’, testing grounds where new technologies such as tokenized markets, tokenized government bonds, and central bank digital currencies (CBDCs) can be safely tested.
Asset tokenization and the use of digital currencies have the potential to increase investor access, market liquidity, and more efficient transactions, including reducing high intermediary bank fees.
Tokenized assets are also more transparent, flexible, and can be used in automated trading, lending, and collateral management systems.
The DFCRC expects nearly half of the economic benefits to come from the collateralized lending market and automated financing via smart contracts.
According to Kate Cooper, CEO of crypto exchange OKX, long-term economic benefits can only be achieved through a clear regulatory framework and institutional-scale infrastructure.
This will attract investment, build trust, and ensure Australia plays a role in the next era of global finance.
If Australia moves quickly to build the right policies and regulations, the country has the opportunity to become a leader in the global crypto and digital asset markets, otherwise this huge opportunity could be lost.
