Australians Embrace Crypto Amid Record Inflation Numbers – The inflation rate in Australia reached 7.3%, the highest level in 32 years. Analysts expect this number to increase even further by the end of the year, given the growing prices of real estate and gasoline. Locals have shown an increased interest in alternative financial assets, such as cryptocurrency, in order to preserve their wealth during these unstable times.
The Australian government has included cryptocurrency on its agenda. Anthony Albanese, the country’s new prime minister, committed to implement thorough regulations in the sector while allowing room for innovation. Australia is another country with significant financial problems.
During the height of the COVID-19 pandemic, the country was nearly completely cut off from the rest of the world. While this decreased the impact of the health crisis and the numbers of deaths, it also reduced Australia’s trade volumes compared to jurisdictions with less stringent regulations.
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To keep the economy afloat, the country’s central bank produced billions of dollars, which is seen as one of the primary causes of the current inflation rate of 7.3%. Frequently occurring natural catastrophes are another issue that has badly impacted Australia. In 2019-2022, massive wildfires destroyed thousands of structures and killed over 30 people. The government spent between $4 and $5 billion in response to the disaster.
Heavy rainfall in 2022 and repeated flooding in numerous Australian provinces, particularly Queensland and New South Wales, exacerbated the situation. The government distributed an additional $3 billion to afflicted families so that they could recover. The military war between Russia and Ukraine and the energy shortages in several regions throughout the world are the other clear causes of the highest inflation rate.
Cryptocurrencies, especially bitcoin and stablecoins, have grown in popularity in countries with significant inflation and economic concerns, notably bitcoin. Observing two distinct studies from 2021 and 2022, this remark may also be applicable to Australia.
17% of Australians, according to data conducted by Finder last year, had some exposure to digital assets. The business anticipated that the share would increase to approximately 23% in 2022. Bitcoin continues to be the most popular cryptocurrency, although Ethereum, Cardano, and Dogecoin are all popular among local investors.
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Earlier this year, the nation’s new ruling party, the Labor Party, gave special attention to digital assets. The Albanese administration has stated that sector regulation is their primary concern. Nonetheless, rules must allow for innovation. The party doubled down on its promises in August, announcing that it will analyze the most popular cryptocurrencies in Australia and supervise them. Before the end of 2022, the program known as token mapping will be implemented.
