Australia’s government is not currently considering a strategic crypto reserve, despite US President Donald Trump announcing the effort in the United States just days earlier.
US President Donald Trump announced on March 2 that the President’s Working Group on Digital Assets was directed to include XRP (XRP), Solana (SOL), Cardano (ADA), Bitcoin (BTC) and Ether (ETH) in the crypto strategic reserve.
A swathe of other US states are also considering adding crypto to their balance sheets.
However, it is understood the current ruling party has no plans to establish a crypto reserve.
A spokesperson for Australian Assistant Treasurer and Financial Services Minister Stephen Jones told Cointelegraph that the government is focused on regulating digital asset 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 industry,” the spokesperson said.
“The Albanese Government knows that blockchain and digital assets present big opportunities for our economy, our financial sector and innovation.”
A change of government could be on the horizon for Australia, however. Constitutionally, a new federal election must be held on or before May 17, and the latest YouGov poll shows the centre-right coalition holding a slight lead over the centre-left Labor government, leading 51% to 49%.
A spokesperson for the Coalition did not immediately respond to a request for comment.
Speaking to Cointelegraph, Tom Matthews, head of corporate affairs at Australian crypto exchange Swyftx, said that while the idea for a reserve is popular, it can also be “fraught with complexity,” and if not managed properly creates the potential for concentration risk with some tokens.
“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. It is just difficult to see where the political traction is going to come from,” he said.
Matthews speculates a more likely scenario is the emergence of a long-only sovereign wealth fund that holds crypto.
Kraken’s managing director for Australia, Jonathon Miller, told Cointelegraph that crypto has already firmly established itself as an investment-grade asset, with ETFs on major exchanges, superannuation funds and sovereign wealth funds already invested for quite some time.
“If it’s suitable for them, it’s certainly worth consideration for long-term asset allocators like the Future Fund and even Treasury,” he said.
Related: Crypto voters could tip upcoming Australian federal election: YouGov poll
It comes as regulators in the country have flagged plans to shift focus toward the crypto industry.
Australian Transaction Reports and Analysis Center CEO Brendan Thomas said in December last year the Anti-Money Laundering regulator was shifting its focus to the cryptocurrency industry in 2025 amid a crackdown on crypto ATM providers who might be flouting Anti-Money Laundering laws.
The Australian Securities and Investment Commission released a consultation paper on proposed guidance for crypto in December as well, placing many digital assets under the category of financial products and requiring firms dealing in crypto to be licensed.
The country has also emerged as a hub for Bitcoin and crypto ATMs, with coin ATM Radar data showing it has the third largest number worldwide at over 1,453 ATMs, up from 67 in August 2022.
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