JASON TITMAN: Why Australia’s politicians are suddenly sweet on the Bond villain of technology

Just when you think you’ve seen it all in politics, along comes crypto.

A technology long cast as the Bond villain of finance has suddenly got bipartisan support. The Treasurer last week talked about the “big opportunities” in digital assets. The Coalition has promised to make crypto an immediate priority if elected.

Many readers will find this baffling. Plenty of people describe blockchain — the tech that crypto is based on — as a haven for grifters. Even supporters of the technology sometimes find it genuinely hard to defend. I am not the only one to ask if it’s healthy for half-a-million new cryptocurrencies to be created in a single month, as happened in January. Most of these coins have the lifespan of a mayfly.

Despite such outward appearances, however, blockchain is a deeply serious technology that fully deserves political support. Former UK MP Tony Benn once divided politicians into two types: weather vanes and sign posts. Weather vanes point whichever way the wind is blowing. Signposts point the way ahead, regardless of vibes.

This moment feels like a Canberra sign post, and a shrewd one at that,for two main reasons.

First, because blockchain technology will make us a more productive country. The computer code at blockchain’s heart removes the need to trust or pay for middlemen. A frightening prospect for ticket clippers everywhere. But especially so in the world of traditional finance, supply chains and global payments and money transfer.

You can already use blockchain technology to send money abroad, instantly, for mere cents compared to dozens of dollars via your bank. Blockchain transfers overseas happen in fractions of seconds as opposed to days under the current SWIFT regime, and via one step versus about 13 steps in the current system of global payments. Plus, the same payment tech could save our largest supermarkets $200 million a year apiece in transaction fees. Reducing inflationary pressure and returning money to us all.

The second reason why this policy shift makes sense is because crypto is already mainstream. More than one in five adult Australians owns digital assets such as Bitcoin, Ethereum or Solana.

Approaching 50 per cent of adults under the age of 50 own it. They live in our cities and suburbs. They pay mortgages and file tax returns. Polling by YouGov suggests this number could grow significantly once regulation is in place. Potentially by up to six million people.

Many readers, particularly among my own age group, will wince at this forecast. The sector is unorthodox and sometimes gruff. But it should not be defined by the bad actors. Cryptocurrency offers incredible efficiencies, interoperability, transparency and innovative solutions. We need to remove the shackles and embrace this new technology.

Crypto also has one big political ace up its sleeve.

It doesn’t require a frightening amount of government cash for Australia to get a competitive advantage.

Unlike AI or quantum, you don’t need nuclear-scale energy inputs to be competitive.

All we require is clear, forward-thinking policy. Assign a few civil servants to draft sensible laws on crypto-tech and, hey presto, Australia has a genuine edge. In a field of technology where a lot of countries are still figuring out the basics, getting the rules right could put us ahead of 95 per cent of the world.

Canny politicians understand that they can support this tech without going YOLO on the public finances. It’s a considered investment in productivity, innovation, and global competitiveness.

The US showed us in the November 2024 election that you don’t lose votes if you are a pro-crypto politician, but you can win them.

The crypto industry wants regulation.

We have been educating our politicians about this space for the past six years and our political leaders have to stop getting distracted with other issues and commit to introducing well considered legislation that is going to help Australia lift its productivity.

Blockchain and crypto could become Australia’s fifth economic pillar behind mining, agriculture, tourism and education. We also need to protect Australian investors by allowing the financial planning network we have developed over the past 40 years to actually be able to provide financial advice on crypto as part of a balanced portfolio.

The industry can thank the pollies that have decided to be sign posts and lead the case for crypto-tech.

If they succeed, everyone, except for the ticket clippers, will be better off.

Jason Titman is the CEO of cypto exchange Swyftx