Australia introduces blockchain in lawsuits

Table of Contents

• Not the first time embracing Blockchain
• Crypto and Australia

The Australian government will test the use of Blockchain technology for intergovernmental document exchange with Singapore as a final step in a series of efforts in favor of Blockchain. This follows on the heels of the creation of a new network promoting Blockchain for public servants.

On 23 November, the Australian Border Force, in collaboration with the Singapore Customs Service and the Singapore Information Technology Development Authority, launched a Blockchain trading test to test digital verification systems. ABF Commissioner Michael Outram explained that the test would help digitize trade records and records.

He noted that the initiative would include paperless trade and secure digital trade sharing as part of the future architecture and design of Australia's single trading window.

The Border Force will hand over the results of the project to the Supply Chain Working Group. 

Last week, Chloe White explained that the network is a way to "reveal which government employees are interested in blockchain." The community of blockchain enthusiasts will be open to any public servants interested in technology.

This is the first step in the implementation of the seventh pointer of the National Blockchain Roadmap: raising awareness in the APS.

In response to Australia's first recession in 30 years, a special senate committee released a report in September predicting significant introductions of blockchain technology in Australia's financial and regulatory sectors. The report widely mentions blockchain with more than 50 citations of the word.

Not the first time embracing Blockchain

It is not the first time we have seen the introduction of Blockchain. The Forex industry has also adopted its use, where regulated Forex brokers in Australia are actively incorporating Blockchain for their activities and gradually it will gain a foothold in other fields as well.

Crypto and Australia

Despite the fact that in the field of cryptocurrencies a lot of illegal activity takes place, that negatively affects this industry, Australia seems to have decided to take up its regulation firmly.

The Australian government is showing good awareness of the growing demand for cryptocurrencies. To date, more than one million Australians have invested in cryptocurrencies, which is about 4% of the country's population.

Currently, Australian authorities are mostly wary of tax evasion by transferring cryptocurrency funds to countries with more lenient anti-money laundering (AML) laws. Crypto-crime has already infiltrated Australia's financial sector, and the country's tax authorities are now looking into bank records to identify individuals among "crypto-clients" who may be involved in money laundering activities.

Sydney University of Technology senior lecturer Adrian Lee explained that Australia has no plans to ban cryptocurrencies because it is a serious innovation. He said the government was looking forward to drafting a strict law - so that Australians would be paid taxes on crypto-profits.

Fiat currencies have existed for a long time and are regulated by very strict rules. Despite this, they are widely used for money laundering and other illegal transactions. On the other hand, cryptocurrencies have existed for a little over 10 years, and much needs to be done to make everything "settled" in this area.

Given these factors, the Australian government sees no point in banning cryptocurrencies on the grounds that there are many cases of digital currency fraud. Of course, the anonymity of cryptocurrencies complicates the task of tracking illegal transactions, but a ban is not necessarily a good way out.

The instability of cryptocurrencies is another reason why governments are afraid to allow digital currencies into their financial system. However, fiat currencies have consistently lost their value throughout their history, and in recent decades we have experienced several serious economic crises.

Thus, the Australian government's approach is a great example of how regulation seeks to maximize the legalization of crypto use. As new economic crises are just around the corner, regulators should also consider how cryptocurrencies will help solve the problems of today's centralized economic system.