Speaking at ASIC’s annual forum, the regulator’s chairman Joe Longo put an end to the hype by bluntly calling out “who cares” about rising bitcoin prices.
Asked to comment on Bitcoin’s performance since the US election, Longo called it a classic case of the “greater fool theory.”
The president also criticized the environmental impact of Bitcoin, pointing out: “The environmental impact of creating this stuff… [is comparable to] all the power of small European countries.
Joining Longo on a panel, Reserve Bank Governor Michele Bullock described Bitcoin’s rise as simply “more buyers than sellers.”
Bullock went further, questioning its very definition: “It’s not a currency, it’s not money, it’s used as some sort of asset class.” I don’t understand that,” she said, adding: “I don’t really see a role for that in the Australian economy or the payments system. »
Together, Longo and Bullock’s remarks signal a clear message: Bitcoin’s speculative push and its heavy environmental costs leave regulators skeptical of its value.
But while Australian regulators question the legitimacy of bitcoin, the United States appears to be taking a radically different stance as President-elect Donald Trump’s new administration signals a potential pivot toward digital assets.
Reports suggest that Trump is considering appointing a more Bitcoin-friendly Securities and Exchange Commission (SEC) chairman, a move that could radically reshape the regulatory landscape, moving from strict enforcement to a more transparent and predictable framework that favors use of digital currency.
The move comes as Bitcoin prices have soared, reaching an all-time high of over US$93,000 earlier this week before settling above US$87,000 on Friday.
Caroline Bowler, CEO of BTC Markets, highlighted the impact of Trump’s return, noting: “Investors are sending a clear message: optimism for the future of crypto under Trump, especially given his public support for bitcoin and to digital assets.
“President Trump’s administration is widely expected to create a more favorable environment for crypto growth, boosting market confidence and attracting new investments.
“While the details remain uncertain, the mere perception of such movements is enough to drive prices higher in a market as narrative as crypto.”
“The head of the SEC has this unwieldy ability to force people to their knees and succumb to our will, but provides no guidance on how they can actually register in a meaningful and legal way,” said Sidelska.
And given the favorable rhetoric and promises from Trump’s campaign, the co-founder predicts that bitcoin will continue to soar in anticipation of a more cryptocurrency-friendly administration.
“We will see unprecedented highs throughout this year, until he comes into power, simply because people expect that any positive sentiment, any rhetoric, will just add fuel to the fire .
This outlook is broadly in line with analyst predictions that bitcoin will surpass US$100,000 in just a few months.
Last September, RBA Deputy Governor Brad Jones said the central bank had decided to focus on a wholesale central bank digital currency (CBDC) rather than a retail version, targeting applications of the institutional finance on consumer transactions.
Namely, the central bank conducted a CBDC pilot in 2023 to explore use cases for a CBDC in Australia, which it said shows little interest in retail applications.
