Digital finance reforms could boost Australia's economy by billions of dollars a year

A new study released at the Australian Digital Economy Conference has found that the country could increase its GDP by 1% annually if it effectively implements digital finance innovation and blockchain technology.

The foreign exchange market is the biggest potential area, generating an estimated $4.8 billion in economic benefits a year, according to the report. Cross-border payments, investment funds, private credit, public debt and private equity were also identified as areas that could create billions of dollars in value through tokenisation and improved transaction processes.

However, the research team believes that Australia is not on track to fully realise this potential. If the current pace of reform continues, only about $1.8 billion in benefits could be achieved per year by 2030, less than half of the actual potential.

OKX Australia director Kate Cooper said that clear regulation and improved access to financial infrastructure are key to fostering innovation. She said the upcoming digital asset licensing regime needs to be implemented quickly, while warning that businesses are still struggling with being denied banking services.

The Australian government recently announced a new regulatory framework for cryptocurrencies, requiring large platforms to obtain a financial services license, while exempting smaller businesses. The aim is to ensure transparency, protect consumers and maintain market integrity.

The study also highlighted that Australia already has a solid foundation of well-developed financial markets and good technological capabilities. However, the major barriers are currently outdated infrastructure, ambiguous regulations and slow adoption of crypto from sectors such as real estate, commodities and private credit.

DECA CEO Amy-Rose Goodey called for concerted action between government and industry so Australia can quickly seize the opportunity to become a global digital financial hub.