Australia Won’t Follow Trump’s Lead on Stockpiling Crypto
While the United States is making moves to stockpile popular cryptocurrencies like Bitcoin, Ether, XRP, Solana, and Cardano, Australia is taking a different approach. The Albanese government has made it clear that it has no plans to establish a national strategic crypto reserve—at least not for now.
In a surprising announcement on March 2, US President Donald Trump revealed that his administration had tasked the President’s Working Group on Digital Assets with including top digital currencies in a strategic reserve. This initiative is part of the broader trend of US states considering adding cryptocurrencies to their balance sheets, further highlighting the growing importance of digital assets in the global economy.
Australia’s Focus: Regulation Over Reserve
However, a spokesperson for Australia’s Assistant Treasurer and Minister for Financial Services, Stephen Jones, confirmed that the Australian government is not exploring the idea of a crypto reserve at this stage. Instead, the government’s primary focus is on building a regulatory framework for digital assets and improving the safety and transparency of crypto platforms.
“The Albanese Government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with the industry,” the spokesperson explained. “We recognize that blockchain and digital assets present significant opportunities for our economy, our financial sector, and innovation.”
While the Albanese government may not be rushing into crypto reserves, they are clear on their support for blockchain and digital assets as long-term drivers of innovation. The focus seems to be on creating a regulatory environment that ensures digital assets are safe and beneficial for Australians.
Political Landscape and Potential Shifts
Australia’s political landscape, however, may be in for a shake-up. A federal election must be held on or before May 17, and recent polling shows the center-right Coalition holding a slight lead over the center-left Labor government (51% to 49%). A change in leadership could shift the government’s stance on crypto, but for now, the Albanese government is focused on regulation and oversight rather than stockpiling digital assets.
Complexity of Crypto Reserves: Experts Weigh In
The idea of a national crypto reserve may be gaining traction globally, but experts in Australia caution that it could come with complications. Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, pointed out that while the concept is popular, it’s also fraught with complexities, particularly around managing volatility and concentration risk.
“If one of the main goals of your country’s strategic reserve is to hedge against crises, the price volatility of crypto is a problem,” Matthews explained. “It’s just difficult to see where the political traction is going to come from.”
Instead of a full-scale crypto reserve, Matthews suggests that a more likely scenario is the creation of a sovereign wealth fund that holds crypto as part of a long-term investment strategy. This model could allow Australia to gain exposure to the crypto market while managing the inherent risks of price swings.
Bitcoin and Crypto Are Already Mainstream Investments
Despite the government’s stance on reserves, many industry insiders argue that cryptocurrencies are already cementing their place as legitimate investments. Jonathon Miller, Managing Director of Kraken for Australia, noted that crypto has already established itself as an investment-grade asset, with ETFs on major exchanges, superannuation funds, and sovereign wealth funds already holding positions in digital assets.
“If it’s suitable for them, it’s certainly worth consideration for long-term asset allocators like the Future Fund and even Treasury,” Miller said, referring to Australia’s sovereign wealth fund.
Australia’s Growing Crypto Presence
In the meantime, Australia continues to make strides in the cryptocurrency space. The country has seen a surge in the number of Bitcoin and crypto ATMs, with over 1,453 ATMs installed, making it the third-largest hub worldwide. This represents a sharp rise from just 67 ATMs in August 2022, signaling strong demand for crypto services.
Moreover, Australian regulators are paying increasing attention to the crypto industry. In December 2024, Brendan Thomas, CEO of the Australian Transaction Reports and Analysis Centre (AUSTRAC), announced that the country’s anti-money laundering efforts would shift focus to the cryptocurrency sector, particularly targeting crypto ATM providers that might be flouting regulations.
The Australian Securities and Investments Commission (ASIC) also released a consultation paper in December, which proposed new guidelines for crypto firms. Under the new framework, digital assets may be classified as financial products, meaning firms dealing in crypto would need to be licensed, adding another layer of legitimacy to the sector.
Looking Ahead: What’s Next for Crypto in Australia?
While Australia may not be planning to establish a crypto reserve anytime soon, its evolving approach to regulation suggests that the country is serious about integrating digital assets into the mainstream economy. The government’s focus on building a robust regulatory framework could pave the way for more institutional investment and innovation in the crypto space.
As the Australian crypto ecosystem continues to grow and mature, it’s clear that the government is setting the stage for a future where digital assets play an important role—not just as speculative investments, but as integral components of the economy. Whether or not the idea of a crypto reserve resurfaces in the future remains to be seen, but for now, Australia is focused on fostering innovation through thoughtful regulation.
