Blockchain technology could add $60 billion to the economy and reverse three decades of slow productivity growth, Australian politician Andrew Charlton told a room of digital asset executives on Tuesday.
Australia’s productivity growth rose by a “reasonably healthy” 2.1% in the 2000s, but it is simply no longer high enough to support the underlying increases, the Charlton MP said at the ‘Australian Blockchain Week 2024 in Sydney on June 11.
“Without productivity growth, there is no sustainable path to higher wages or higher standards of living,” Charlton said, laying out his case for increased adoption of blockchain technology in the country.
“We need it more than ever.”
Labor productivity in Australia increased by just 0.9% in the final quarter of 2023, according to the Australian Productivity Commission.
Charlton – who is seen as a pro-crypto politician in Australia – said blockchain technology could fuel growth in the Australian economy in the same way as air travel, cars, silicon chips, the internet and more. other technologies from previous generations.
It has a “rare ability” to improve not only its own industry but many others, Charlton said, noting it could be used to manage health records, tax collection, real estate and voting .
It can also improve supply chains by ensuring transparent, real-time tracking and delivery of products, and it can revolutionize the way financial transactions are processed by reducing intermediaries and transaction times.
“With appropriate metrics and regulations, the digital assets sector could contribute up to $60 billion per year to the Australian economy.”
But Charlton was unhappy with the Australian government’s slow progress in developing digital asset regulation.
“We have the power to be a leader in responsible digital asset innovation,” Charlton said. “But the reality is that right now we are not seizing this opportunity.”
about: Blockchain Australia CEO calls for joint effort to crack down on cryptocurrency scams.
Australia has yet to pass any cryptocurrency laws.
Charlton hopes Australia will adopt a regulatory framework that will allow Australian companies to hold digital assets in the same way they hold traditional assets.
“I think if we get it right, Australia has the opportunity to be a leader in responsible digital asset innovation.”
Charlton noted that Singapore, Europe, Hong Kong and the United Arab Emirates (UK) have been at the forefront of countries implementing new legislation aimed at driving digital asset innovation in financial services.
The politician also said he wanted to see the Australian government address its tech skills shortage, noting that the country had struggled to attract more digital asset startups in recent years.
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