Last week, top Australian regulators dismissed bitcoin’s recent price surge, labelling it speculative, environmentally damaging, and economically irrelevant.
Speaking at the ASIC Annual Forum, the regulator’s chair, Joe Longo, cut through the hype with a blunt “who cares” about bitcoin’s price jump. Asked to comment on bitcoin’s performance since the US election, Longo called it a classic case of the “bigger fool theory”.
Joining Longo on a panel, Reserve Bank governor Michele Bullock described bitcoin’s rise as simply “more buyers than sellers”.
Bullock went further, challenging its very definition: “It’s not a currency, it’s not money, it’s being used as some sort of asset class. I don’t understand it,” she said, adding, “I don’t really see a role for it certainly in the Australian economy or the payments system.”
Together, Longo and Bullock’s remarks signal a clear message – bitcoin’s speculative surge and heavy environmental costs leave regulators unconvinced of its value.
However, in a statement on Monday, BTC Markets’ Bowler argued that such language is damaging, particularly given its source.
“Crypto is not a dirty word,” the CEO said.
“Policymakers must remain adaptable and open to the opportunities that cryptocurrencies present. While these assets may not align with traditional concepts of ‘money’, they are undeniably reshaping the financial landscape.”
Bowler called for “a more open-minded approach,” emphasising that dismissing cryptocurrencies as a passing trend overlooks profound global changes already underway.
“Cryptocurrencies are reshaping global financial systems and dismissing them as a passing trend overlooks the profound changes already taking place. Australia must recognise the opportunities these digital assets present,” she said.
She pointed out that nations are increasingly exploring cryptocurrencies, like bitcoin, as reserve assets, with the US leading the way.
“Cryptocurrencies and blockchain technology have moved from niche topics to central players in global finance. For instance, the United States has explored a strategic bitcoin reserve to address national debt, an idea supported by figures such as Wyoming Senator Lummis,” the CEO said.
“The Pennsylvania House of Representatives is pushing to hold bitcoin as a reserve asset, positioning it as a store of value akin to gold. While unconventional, it highlights growing recognition of cryptocurrencies as a legitimate asset class.”
For Bowler, the question is not if, but how Australia will embrace this financial evolution. She also argued that Bullock’s dismissal overlooks blockchain innovations like Australia’s Project Dunbar, a collaboration with the Monetary Authority of Singapore, the Bank of Indonesia, and the South African Reserve Bank, which explores using central bank digital currencies (CBDCs) to improve cross-border payments.
Bowler warned that by hesitating to engage with these crypto-based innovations, “Australia risks missing out on an opportunity to be a leader in the global digital economy”.
“A forward-thinking regulatory approach could allow Australia to remain competitive on the world stage, ensuring that it is not left behind as digital currencies gain further traction globally.”
According to recent research by Finder, approximately 27 per cent of Australians, around 5.6 million people, have owned or expressed interest in owning cryptocurrency. Furthermore, about 17 per cent of Australians have actively bought, sold, or held cryptocurrency in the past two years.
Since Donald Trump’s election as President of the United States, bitcoin has seen a significant price surge, surpassing the US$90,000 mark and reaching record territory.
