..

Technology

Future of Blockchain in Australia: Five Predictions for 2019

  • Written by William Lusk

The dawn of 2018 saw great euphoria around crypto currencies lead by a huge surge in the price of Bitcoin, the earliest crypto currency known to the world. But, soon, the meteor started disintegrating and across the next 12 months, Bitcoin has nearly touched the ground with prices hovering around the $3,000 mark from a lifetime high of about $21,000. Some people still made money from the rubbles, some others were wise enough to exit at the top, and the majority lost money in tons. Thus, 2018 was a mixed basket for crypto currencies around the world.

In the first week of January, 2019 the number of active coins or crypto currencies traded is in excess of 2000!! Apparently, everyone who saw the meteor rise have jumped into the bandwagon, hoping to make it big one day or the other. Does that make a good story line for human enterprise vs. Avarice? There are many arguments that support the future of crypto currencies, but the fact remains that they are on marshy ground and can hardly grow the roots to sustain.

On the other hand, Blockchain, the technology behind crypto currencies is distinguished from the currency itself. Australia has launched great initiatives in adapting blockchain technology for a wide range of use cases. The 13th largest economy in the world has established itself as the innovation centre for block chain technology. The talent pool is also deepening quickly with an entire district devoted to blockchain innovation in southern Australia. Restaurants, driverless buses, meetup spaces, open space put together, is rising to be the Silicon valley for Australia. This is a clear demonstration of how the Australian government is taking block chain seriously for the benefit of Australians, Australian businesses and governance.





Even with all these desirable initiatives, there are the inevitable criticism, fears and initial setbacks that any new technology has to face before emerging as a force to reckon with. The local eco system in Australia will continue to mature and there is plenty to be excited about with regard to blockchain and what it beholds for Australia.

In the last one year, Australia has been in the forefront on ISO with regard to development of standards for distributed ledgers and blockchain around the globe. During the same period Brisbane Airport also became the first crypto friendly airport and nearly every retailer in the airport is accepting different types of crypto assets.

On that note, Blockchain Australia is now looking at how 2019 will pan out for Blockchain initiatives in Australia


Stablecoin

Stablecoin is expected to be launched pretty soon in 2019. This will also be first digital currency tied to the Australian dollar. The regulatory environment in Australia is very favourable and with Stablecoin tied to a fiat currency, we can expect it to garner widespread acceptance by different market participants as soon as the coin is launched. With new local exchanges expected to be available to Australians soon, it will help the ecosystem and encourage adoption of more digital currencies and facilitate trading of such securities on a broader scale. Launch of stablecoin can also make it significantly easier for crypto currencies to come under regulatory framework.

Enhanced Regulation

With crypto exchanges receiving higher regulatory understanding enhanced regulation is expected to become easier. It is also essential that regulator like the ASIC are able to strike a right balance between consumer protection and innovation, particularly in the context of new ICOs opening everyday to investors in Australia. ASIC has repeatedly demonstrated its keenness to work closely with the blockchain community. Their latest guidelines released in October last also meant that Australian start-ups seeking to raise funds via an ICO can have a closer understanding of the obligations under the ASIC Act and the Corporations Act. This initiative has come in the wake of a new approach adopted by senior stakeholders in the government and ASIC leading to digital currencies spared of double taxation setting blockchain standards internationally. ASIC also launched a publication on MoneySmart to educate consumers on ICOs.

Crypto Focused ETF

The SEC in the United States has been consistently turning down attempts for introduction of a crypto focused ETF and this has happened for the last nine times. However, a general consensus appears to be in place that approval may be granted to a fund that has physical backing. There can be no doubt that ETFs as a low cost investment for passive investors is rising in popularity. The SEC is also on record that it could approve a Bitcoin ETF subject to the proviso that adequate and correct controls are put in place to prevent and deter ‘manipulative and fraudulent acts’. This calls for a regulated market that is significant in size relative to Bitcoin. If the SEC approval does come forth, Australia may follow suit, specially if larger institutional investors are also willing to step in.

 

Crypto Space is Attracting More and More Institutional Investors

Large institutional investors like Goldman Sachs, Fidelity and Blackrock have already evinced keen interest in jumping into the crypto bandwagon. In the days to come, we might well see institutional platforms that are dedicated to bring crypto currencies for institutional investors. Institutional investors have already pumped in as much as $248 million dollars into crypto currencies as at June 2018.


Use Cases Will Be More Interesting As The Sector Matures

Some 13% of Australian fintech is already operating in the crypto currency and blockchain space according to census data provided by EY Fintech Australia. Many solutions based on the blockchain technology have already risen to the forefront because of their ability to improve public services delivery and trust for the public sector. In July last, the federal government has partnered with IBM in a $1 billion deal in order to accelerate blockchain adoption, quantum computing and artificial intelligence in public sector enterprises.

While these initiatives are in different stages of adoption/implementation, a major hurdle is the lack of appropriate policy settings and standards for transitioning in to the permissionless environment that distributed ledger presents.

 

More Articles ...

  1. Ecigforlife Vaping: All about Smoking Cigarettes
  2. Movepal: Aussie tech startup launches Uber like App for moving
  3. Using Your Handheld for Business
  4. Aussie software revolutionising the car industry across the world
  5. How to prepare your e-commerce store for Black Friday 2018
  6. Why it is vital to maintain prestige cars correctly
  7. Is Australia ready for electric cars?
  8. What’s in a name? For an App, a lot
  9. Why use a Fish Finder?
  10. Gavl the leading digital platform for live bidding
  11. Why Ducted Air Conditioning Is For Your Home Office
  12. Storage and warehousing about to become very affordable for Australian businesses
  13. With design, you get what you ask for
  14. Best transport apps to get around Australia without a car
  15. Build Your Own Theatre: 6 Mistakes to Avoid
  16. How to Build Your Business Using Social Media
  17. Basic Consideration Before Getting an excavator
  18. Wish away all your TV reception problems with Antenna Genie
  19. Mining The Gap in Australia's History
  20. Oliver Footwear All-Terrain 55 construction and manufacturing footwear range
  21. How do they repair hail dents?
  22. Maintaining Your Bike Through Winter
  23. How to Fix Startup Disk Full Error?
  24. Reasons Why Investing In SEO Is Smart For Your Business
  25. The Mechanics behind Slots
  26. AussieStart-Up ranks top 10 at Techsauce Global Summit
  27. Cyber security consultancy Foregenix
  28. Which Software Companies are Nailin’ it in the iGaming Business
  29. Is Blockchain Technology in the Future of Online Gaming?
  30. Variations For a Theme - 5 Of Our Favourite Wordpress Backup Plugins
  31. OPTUS INNOVATION HUB LAUNCHES IN SYDNEY STARTUP HUB
  32. New AAC product launched in Australia: MaxiFloor
  33. Avoid playtime tears and tantrums: Keeping toys in top condition is child’s play
  34. 3 Times when you should think of getting your old car re-modelled
  35. The Environmental Effect of Switching to Solar in Australia
  36. All the Benefits of CCTV Camera Inspections You Should Know About
  37. General Essay Writing Tips
  38. HP: Pioneers of Laser Jet Printing
  39. ROBOTICS SUCCESS STORY ATTRACTS ENTHUSIASTIC AUSTRALASIAN INVESTORS
  40. New Series Coming to Cord Cutters in 2018
  41. Australian ebike business pedaling ‘green’ change across Government
  42. Invoice2go partners with Paypal to launch tap and go payments for mobile businesses
  43. Best Car Tyres for Australia’s Climate
  44. John Zanol: Electric bikes now Australia’s cheapest form of transport
  45. The New Risk for Business – Cloning
  46. Why Choosing A Local Web Designer Is Important
  47. Log Book goes online: Licence Ready leads the way in NSW with driver education
  48. What Can Businesses Learn from The Equifax Hack?
  49. Mobile gaming keep growing at 2017
  50. 5 Reasons Why E-Cigarettes Are Growing in Popularity in Australia

Politics

Central and North Queenslanders overwhelmingly back coal sector

More than 80 per cent of young people in Central and North Queensland believe the coal sector and the jobs it creates are critical to the state’s economy, particularly regional Queensland.   Mi...

Senator Canavan - avatar Senator Canavan

AWU National Secretary Daniel Walton on steel industry

Ambitious expansion plans make mockery of those who wrote off Australian steel industry GFG Alliance's planned rejuvenation of the Whyalla steelworks, and the Australian steel industry more generall...

Media Release - avatar Media Release

George Neophytou supports roads funding and more

Independent candidate for Gippsland East George Neophytou has pledged to support completion of duplication of the Princes Highway between Traralgon and Sale and to upgrading of the Sale alternative ...

George Neophytou Media Release - avatar George Neophytou Media Release

Business News

6 Tips for Choosing the Perfect Business Process Management Software

Choosing the right business process automation software can be a daunting task for several reasons.  First, it presents a complex market offering various products that vary significantly in the type...

News Company - avatar News Company

10 Excellent Business Ideas for Young Entrepreneurs in 2019-2020

Top 10 Low-Budget Business Ideas for Students in 2019 Whoever said that you should wait for 10 or even more years after your graduation to launch your own business? 69% of US citizens start their ...

Elsa Avendano - avatar Elsa Avendano

The 1-Page Marketing Plan

SKIP BUSINESS SCHOOL. READ THIS NEW BOOK INSTEAD. Named as one of the “10 best marketing books for small business owners” by The Huffington Post.   MEDIA RELEASE: MELBOURNE, DECEMBER 13, 2018 —...

Claire Marshall - avatar Claire Marshall

Travel

Road Trip On Your Mind? Keep These Aspects In Mind As Well

Take a Road Trip! The great road trip. Movies are made of this type of freedom. The roads are calling and you are feeling the need for a road trip. Join millions of other people who enjoy the great o...

News Company - avatar News Company

Best Short Term Accommodation in Brisbane

Brisbane, the capital city of Queensland in Australia is known for its museum and Science center. With a lot of creative spaces and gardens on the riverside, it is a magnificent and popular destinat...

News Company - avatar News Company

Best Short-term Accommodations in Sydney

If you are looking to spend a night or two in the sprawling city of Sydney, you might be in need of a lodging place or hotel to stay. We would like to give you here a list of the best short term acc...

News Company - avatar News Company