Why Australians don’t use digital currency?

David Kemp

The research was conducted by Australia’s central bank, titled the Reserve Bank of Australia. It is known that RBA researched and analyzed in October and November 2019. Shown in the bank’s triennial survey (CPS), the outcomes from approximately 1,100 respondents indicate that while customers are generally applying digital and alternative payment means over cash, they are indeed not paying in cryptocurrency.

RBA reported that in spite of the fact that many respondents knew enough about ‘cryptocurrencies’, a very small number had used a digital token such as Bitcoin to make a purchaser payment during the past year.

RBA highlighted the increasing significance of electronic payments. There is a growing demand for affordable and secure payment means. As a response, the bank reported that it is currently arranging a regulation on market payments review for 2020. This review would consider a wide range of issues like competition, efficiency, and security of retail payments.

Cryptocurrency is the third most popular payment method in Australia

Respondents are aware of the fact that digital currency can be used to make payments for goods, however, there is very low usage of digital currency among Australians. RBA has earlier cast doubt on crypto’s prospective to surpass current payment rails.

This is the first time that the CPS survey conducted by RBA’s questioned respondents about digital currency. The investigation had been led on five preceding occasions.

Over 80% reported they’d known of crypto, considering it the third-most acknowledged “alternative reimbursement method”. The bank surveyed, behind mere services “buy now and pay later” in addition to “tap and go” mobile payments.

Without a doubt, Crypto was the least-used payment method last year. It fell behind payments such as AliPay with WeChat Pay, then bank-owned “Beem It” and “PayID” services, and mobile app payment alternatives. As indicated in the survey, the cryptocurrency had the lowest usage-to-awareness proportion undoubtedly. 

RBA found out that cash use within the territory of Australia is down in 2019, specifically amid younger demographics comprising individuals under 40, who provided payment by cash for just 15% of recorded operations. Even the older age groups are moving away from notes, the survey found. Nevertheless, it is still the most prevalent payment method for individuals 65 years and more. 

Australians prefer electronic methods of payment

According to the survey, mobile payment methods are increasing. That type of growth is caused by younger generation demographics too. A high level of people’s awareness about cryptocurrency in Australia may be explained by the Australian management’s general supportive vision of the technology.

As announced by Cointelegraph, in the middle of 2019, the Australian Department of the Treasury excluded digital assets from its novel cash limit of 10,000 AUD ($6,900). Furthermore, Australia has been enthusiastically involved in the development of blockchain, liberating its nationwide blockchain plan of measures in February this year.

The New South Wales district court that took place on Feb. 27, issued a regulation that digital currencies like BTC could be used as a security, with the judge claiming that virtual currency is “an acknowledged form of investment.”