Australian Senate Sees Blockchain Technology As The Future Of FinTech And RegTech
Australian Senate releases a report on the impact of blockchain technology on the country’s economy, technology status, and regulation technology. Released earlier this month, the 281-page interim report, “Select Committee on Financial Technology (FinTech) and Regulatory Technology (RegTech)”, focused on innovative technologies, laying out the benefits of implementing blockchain technology across the economy.
The interim report further mentioned the myriad of initial coin offerings (ICOs) and the benefits it could bring despite the wave seeming to have already passed.
The potential of blockchain is immense
In a full section dedicated to blockchain technology and associated cryptocurrencies, the interim report mentioned the benefits of the innovative currencies in shaping the future of the Australian economy. The Senate highlighted the potential of the blockchain in growing economic value and benefited a range of industries – financial and insurance services, scientific and medical research, technical and service industries.
“Other areas include healthcare and social assistance, agriculture as well as real estate services.”
The benefits of blockchain technology are expected to translate into financial growth for these industries, the report stated. In the next five years, blockchain technology will help raise an estimated $175 billion annually with a $3 trillion target in the next decade.
Further supporting integration and building on blockchains is Michael Bacina, Partner at Piper Alderman, a fintech and blockchain firm, stated,
“Most fintech and regulation technology projects will either be built predominantly on distributed ledger technology or blockchain or heavily using that within the next 10 years”
A closer look on initial token offerings
The ICO wave seems to have passed with newer and more decentralized methods of raising capital using crypto emerging by the day (tsk, DeFi). However, the report mentioned the ICO ecosystem asking why Australians are not yielding from them anymore.
Highlighting the disparity between Australian and the global ICO ecosystem, Power Ledger’s co-founder and Executive Chairman, Dr. Jemma Green, stated the continental state only contributed to less than 1% of the $26 billion raised in public token offerings. Dr. Green said,
“And so I think there's a bigger play around capturing the value for those markets in the Australian economy, as opposed to them being based outside Australia. It's stimulating the fintech sector, providing employment opportunities, and delivering better quality services to the Australian people.”
According to Green, ICOs provides a potentially large industry that would help build job opportunities for thousands of Australians. However, regulations need to be set in place to promote the growth of decentralized capital raises, the report further explained.