Digital financing reform can add billions to Australia’s economy, according to new research

Billions of economic gain can be achieved if Australia develops a strategic approach to innovate its digital financing sector, according to new research that is revealed on the Australian Digital Economy Conference on Monday in the Gold Coast.

Mapping specific opportunities on the financial markets, the study showed that foreign exchange emerged as the most important chance, estimated at around US $ 4.8 billion a year, followed by cross -border payments at US $ 7.6 billion.

Extra opportunities include different asset classes: investment funds ($ 670 million), private credit ($ 1.34 billion), government debt ($ 1.07 billion) and private equity ($ 800 million). Even niche markets, such as carbon credits, offer potential profit due to tokenization and streamlined trade.

“Australia is on an important fork on the road,” said Talis Putnins, chief scientist at the Digital Finance Cooperative Research Center, in a statement shared with Decrypt. “By working together in pace, we can choose a path with which we can seize this opportunity and turn Australia into a leader of digital finances.”

Nevertheless, the team acknowledges that the country “is currently not on its way to realizing even half of the potential economic profit”, although it says that it has continuous commitments with the government.

Data based on the investigation indicate that it is expected that only about $ 1.8 billion a year will be unlocked for economic profit by 2030, assuming that the current pace will continue.

The research method has measured how blockchain technology improves the value -exchange, essentially eliminates intermediaries and reduces friction for financial transactions.

When the settlement takes place immediately instead of over days, and the costs fall from dollars to cent, completely new economic activity becomes possible.

OKX Australia CEO Kate Cooper Kate Cooper meanwhile noted that the study currently records only two segments, with “extra benefits that must be obtained through digital financial innovation that goes beyond economic impact,” she said, pointing to broader applications in the final report in November.

When asked which specific policy or legal changes would best increase the approval of digital financial innovation in Australia, Cooper pointed to the need for license lighting and tackling the country Debanking -things.

“Treasuries digital assets regime is coming, but speed is everything. Clear rules will unlock capital and trust,” Cooper said Decrypt. “Without access to basic financial rails, innovation is active with a handbrake.”

The research suggests that Australia already has the fundamental elements: strong financial markets and its technological possibilities to become a global digital financing hub.

Nevertheless, the greatest obstacles to the unlock of the full potential of digital financing of US $ 12 billion of Australia, outdated infrastructure, unclear regulatory standards and resistance of sectors such as private credit, raw materials and real estate, which are slow to accept tokenization.

However, what remains if a question is not whether these profits are feasible, but how quickly the country could mobilize to catch them. The path Voorwaart requires coordinated action, according to Deca CEO Amy-Rose Goodey.

The foundation is already laid “for better -informed, coordinated decisions while we form the next chapter of the digital economy of Australia,” said Goodey.

Edited by Sebastian Sinclair